How Much Do Most Buyers Put Down on a Home?

Short answer: There is no single number. First-time buyers often put about 6 to 8 percent down. Repeat buyers commonly bring 15 to 20 percent. Minimums depend on the loan: conventional minimum is 3 to 5 percent, FHA 3.5 percent, and VA or USDA 0 percent for eligible borrowers. Twenty percent avoids PMI, but many buyers purchase successfully with less.

The big picture

Down payment strategy is a balance of liquidity, monthly affordability, and speed to ownership. A larger down payment can lower your rate, remove mortgage insurance, and reduce the monthly bill. A smaller down payment can preserve cash for reserves, renovations, or investing. The right answer depends on your timeframe, market conditions, and how much cushion you want after closing.

What lenders actually look at

Lenders weigh more than the down payment itself. Credit score, debt-to-income ratio, reserves, and property type all shape your options. Strong credit and documented savings can offset a smaller down payment. We model these tradeoffs side by side so you see the real impact on approval and monthly cost.

Typical minimums by program

• Conventional: as low as ~3% for qualified borrowers

• FHA: 3.5% with mortgage insurance premium

• VA: 0% for eligible service members and veterans

• USDA: 0% in eligible rural areas with income limits

• Jumbo: often 10–20% depending on lender and profile

Why 20 percent is a benchmark (not a rule)

Putting 20 percent down removes private mortgage insurance, reduces lender risk and improves interest rate. It can also strengthen a purchase offer in competitive markets. The tradeoff is time. Waiting to save a larger sum can mean years of rent or missing a favorable rate window. For many buyers, purchasing sooner with a smaller down payment and keeping strong reserves is the safer path.

When less than 20 percent makes sense

Buying with 3 to 10 percent down can be wise if the payment is comfortably affordable, you keep a healthy emergency fund, and you expect stable income. This is common for first-time buyers who value speed to ownership and flexibility. You can always remove PMI later through refinance or by reaching the required equity threshold and requesting cancellation per your loan’s rules.

When 20 percent or more makes sense

A larger down payment can shine when you want the lowest possible monthly obligation, you plan to hold the home for many years, or you are competing for a property where stronger terms matter. It also reduces interest paid over time and cushions against appraisal gaps in fast-moving markets.

Costs beyond the down payment

Closing costs and escrows often add 2 to 5 percent of the purchase price. Plan for appraisal, inspections, insurance, taxes, title, and prepaid interest. Keep funds for moving, basic furnishings, and an initial maintenance buffer. Thin cash after closing can create stress, even if the payment looks fine on paper.

Helpful prompts for your down payment memo

• Target price, preferred monthly payment, and maximum comfortable payment

• Minimum reserves you will keep after closing (months of expenses)

• Program options you qualify for and their total monthly costs with PMI or MIP

• Appraisal gap plan if the market is competitive

• Timeline to refinance if rates fall or equity rises

Building your plan step by step

Begin with a realistic price range and a payment you can live with during a normal month and a hard month. Compare three stacks: 5 percent down, 10 percent down, and 20 percent down. For each, include principal and interest, PMI or MIP if applicable, taxes, insurance, and HOA. Stress-test the budget by adding a modest increase to taxes and insurance, then check that reserves remain intact. If the smaller down payment keeps your cash safety net healthy without pushing the payment past your comfort, it may be the better choice for this season.

Quick checklist before you commit

• Verified pre-approval that matches the plan

• Closing cost estimate and cash to close confirmed in writing

• Post-closing reserves equal to at least 3 months of total housing costs

• Clear path to remove PMI or refinance later if desired

• Inspection and insurance quotes aligned with your budget

FAQs

Do I need 20 percent to avoid PMI?

Yes for standard conventional loans, but alternatives exist such as lender-paid PMI or split loans. We compare the true all-in cost before you choose.

Can I use gift funds?

Often yes, with documentation and potential minimum borrower contribution rules. Check your program guidelines.

Is down payment assistance available?

Many states and localities offer grants or deferred loans for eligible buyers. We help identify programs and confirm how they affect closing and monthly costs.

Should I wait to save more?

Sometimes. If saving a bit longer lowers risk and keeps cash healthy, waiting can be smart. If rates are rising or rent is high, buying sooner with a smaller down payment may be more efficient.

The Equity Authority approach

We start with your goals, then run side-by-side scenarios that show payment, cash to close, reserves, and future refinance paths collaboratively with your lending professional. You will see how 3, 10, and 20 percent down change approval odds and monthly life. Our aim is simple: help you buy confidently, keep cash where you need it, and align the purchase with your long-term plan. From Property to Prosperity, On Purpose, With Purpose.