How much down payment do you need for a house?
A down payment is the portion of the purchase price paid without mortgage financing. It is only one part of the cash needed to buy a home. Buyers may also need money for closing services, prepaid taxes and insurance, inspections, moving and emergency savings after settlement.
This calculator separates those amounts and includes gifts, assistance and transaction credits so the savings goal is more realistic than the down payment alone.
How the down payment calculator works
The down payment reduces the purchase price to estimate the base mortgage and LTV. Estimated closing costs, fixed buyer costs, prepaids and your chosen reserve are then added. Eligible gift funds and assistance reduce the amount you personally need, while seller or lender credits are limited to the estimated closing-cost and prepaid portion in this planning model.
Conventional planning
Conventional down-payment and mortgage-insurance requirements depend on the product, property, occupancy, borrower and lender. Compare several percentages instead of treating 20% as mandatory.
FHA planning
HUD states that eligible FHA borrowers may have a down payment as low as 3.5%. Mortgage insurance and other requirements still apply.
VA planning
VA states that eligible VA-backed purchase loans can offer no down payment when the sales price does not exceed appraised value. Eligibility and lender underwriting apply.
USDA planning
USDA's guaranteed program can provide 100% financing to qualifying borrowers purchasing eligible rural properties. Income, property and underwriting requirements apply.
Down payment versus cash to close
Cash to close can be higher than the down payment because it includes settlement charges and prepaids, or lower when permitted credits offset transaction costs. Preserve funds for repairs and emergencies rather than assuming every available dollar can be used at settlement.
After choosing a scenario, use the mortgage calculator for the monthly payment and the affordability calculator to compare the home with income and debts.
Down payment questions
Do I need 20% down to buy a house?
No. Some eligible borrowers use lower-down-payment programs. Twenty percent is a useful comparison point because it changes LTV and may affect conventional mortgage insurance, but it is not a universal requirement.
Are closing costs included in the down payment?
No. The down payment applies toward the purchase price. Closing costs and prepaids are separate components of cash to close.
Can gift funds help with a down payment?
Some programs permit eligible gifts with documentation and source requirements. Confirm acceptable donors, documentation and borrower-contribution rules with the lender.
Can seller credits pay the down payment?
Seller credits generally apply to permitted closing costs and prepaids rather than the required borrower down payment. Limits and eligible charges vary.
How long will it take to save a down payment?
The timeline divides the remaining cash shortfall by the monthly savings contribution. It does not model investment returns, price changes, inflation or changes in closing costs.