Down Payments
Learning Center Stage 3 / 4 — Build Your Homebuying Budget & Understand Mortgage Options
Twenty percent down is a common benchmark, not a requirement. Many programs allow far less — some conventional and FHA loans go as low as 3–5% down, VA loans allow 0% for eligible veterans, and USDA loans allow 0% in eligible rural areas. Putting down less typically means paying mortgage insurance until you build enough equity, but that's a tradeoff, not a dealbreaker.
Down payment assistance programs exist in most states, often defined more broadly than buyers expect — many count anyone who hasn't owned a home in the past three years as a "first-time buyer." These programs can include grants, forgivable loans, or low-interest second mortgages, and it's worth asking a lender to check your eligibility early.
Remember that your down payment is only part of your upfront cash. Closing costs (typically 2–5% of the loan) and cash reserves add to the total — plan for the full picture, not just the down payment line item.