Down Payment Calculator
Calculate how much you need to save for a home down payment based on your target price, loan type, and savings timeline. Compare 3.5%, 5%, 10%, and 20% scenarios side by side, see PMI impact on your monthly payment, and get a personalized savings plan — free, private, no signup required.
| Down % | Down Payment | Loan Amount | Monthly P&I | Monthly PMI | Total Monthly |
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How Much Down Payment Do You Need?
A down payment is the upfront cash you pay toward the purchase price of a home, with the remainder financed through a mortgage loan. While the traditional guideline is 20% down, most buyers today put down far less. According to the Consumer Financial Protection Bureau (cfpb.gov), the median down payment for first-time homebuyers is just 6-7% of the purchase price. Conventional loans allow as little as 3% down for qualified borrowers. FHA loans backed by the Federal Housing Administration require only 3.5% down with a credit score of 580 or higher. VA loans for eligible veterans and active-duty service members require zero down payment. USDA loans for rural property purchases also offer 0% down options for income-eligible buyers.
The tradeoff for a smaller down payment is higher monthly costs through private mortgage insurance (PMI), a larger loan balance, and more total interest paid over the life of the loan. This calculator helps you visualize exactly how each scenario compares so you can choose the right balance between upfront savings and long-term cost.
How PMI Affects Your Monthly Payment
Private mortgage insurance (PMI) is required on conventional loans when the down payment is less than 20% of the home price. PMI protects the lender — not the borrower — against default risk. According to the CFPB, PMI typically costs between 0.5% and 1% of the total loan amount per year, added to your monthly mortgage payment. On a $380,000 loan (5% down on a $400,000 home), PMI adds roughly $158 to $317 per month.
The good news: PMI is not permanent. Under the Homeowners Protection Act, your lender must automatically cancel PMI once your loan balance reaches 78% of the original home value. You can also request cancellation at 80% loan-to-value (LTV). FHA loans use a different system called mortgage insurance premium (MIP), which requires both an upfront premium (1.75% of the loan) and annual premiums (0.55% for most loans) that last the entire loan term unless you put at least 10% down. Use the comparison table above to see exactly how much PMI adds to each scenario.
Down Payment by Loan Type
Each mortgage program has different down payment requirements, eligibility criteria, and insurance structures. Here is a comparison based on 2026 guidelines from Fannie Mae, FHA, VA, and USDA:
- Conventional: Minimum 3-5% down. PMI required below 20%. Best rates for credit scores above 740. No upfront mortgage insurance fee.
- FHA: Minimum 3.5% down (580+ credit) or 10% down (500-579 credit). Requires both upfront MIP (1.75%) and annual MIP (0.55%). MIP lasts the life of the loan for less than 10% down.
- VA: Zero down payment required. No PMI. Requires VA funding fee (1.25-3.3% of loan) unless exempt. Available only to veterans, active-duty military, and eligible surviving spouses.
- USDA: Zero down payment. Requires upfront guarantee fee (1%) and annual fee (0.35%). Property must be in a USDA-eligible rural area. Income limits apply based on county median.
VA and USDA loans offer the lowest barrier to entry but have strict eligibility requirements. For most buyers, the choice comes down to conventional versus FHA — and the right answer depends on your credit score, savings, and how long you plan to stay in the home.
Strategies to Save for a Down Payment
Building a down payment fund is the biggest financial hurdle for most homebuyers. According to HUD (hud.gov), several programs and strategies can accelerate your timeline:
- First-time buyer programs: Many states offer down payment assistance (DPA) grants or low-interest second mortgages. Check your state housing finance agency for current programs — some provide $10,000-$25,000 in assistance.
- Gift funds: Conventional loans allow 100% of the down payment to come from family gift funds for purchases with 20%+ down. FHA allows gift funds for the full 3.5% minimum. Document the gift with a signed letter.
- Employer programs: Some employers offer homebuyer assistance or housing stipends. Government employees may qualify for the Good Neighbor Next Door program (50% discount in revitalization areas).
- Automated savings: Set up automatic transfers on payday to a dedicated high-yield savings account. Even $500/month reaches $18,000 in three years — enough for 3.5% on a $500,000 home.
- IRA withdrawal: First-time buyers can withdraw up to $10,000 from a traditional IRA penalty-free for a home purchase. Roth IRA contributions (not earnings) can be withdrawn anytime without penalty.
Use the savings timeline feature in this calculator to set a monthly target and see exactly when you will reach your down payment goal. Sources: cfpb.gov, hud.gov, fanniemae.com. Last updated: April 2026.
Frequently Asked Questions
How much should I put down on a house?
The ideal down payment depends on your financial situation and loan type. Putting 20% down avoids PMI and gives you the lowest monthly payment, but most buyers put down 3-10%. According to the Consumer Financial Protection Bureau (cfpb.gov), the median first-time buyer puts down 6-7%. Use this calculator to compare scenarios and find the balance between upfront cost and monthly affordability.
What is PMI and when can I stop paying it?
Private mortgage insurance (PMI) is required on conventional loans when your down payment is less than 20%. It protects the lender against default. PMI typically costs 0.5-1% of the loan amount per year. Under the Homeowners Protection Act, your lender must automatically cancel PMI when your loan balance reaches 78% of the original purchase price. You can request cancellation at 80% loan-to-value ratio.
What is the minimum down payment for an FHA loan?
FHA loans require a minimum 3.5% down payment with a credit score of 580 or higher. Borrowers with credit scores between 500 and 579 must put at least 10% down. FHA loans also require an upfront mortgage insurance premium (1.75% of the loan) and an annual premium (currently 0.55%) that lasts the life of the loan for down payments under 10%.
Can I buy a home with no down payment?
Yes, through two government-backed programs. VA loans are available to veterans, active-duty military, and eligible surviving spouses with zero down payment and no PMI. USDA loans offer zero down for income-eligible buyers purchasing in designated rural areas. Both programs have specific eligibility requirements but can save tens of thousands in upfront costs.
Is it better to put 5% or 20% down?
Putting 20% down eliminates PMI and reduces your monthly payment, but requires significantly more upfront cash. For a $400,000 home, the difference is $60,000 in savings needed. If home prices are rising, getting in sooner with 5% down may build equity faster than waiting to save 20%. The comparison table in this calculator shows exact monthly cost differences for each scenario.
Can I use gift money for a down payment?
Yes. Conventional loans allow 100% of the down payment from gift funds when putting 20% or more down. For lower down payments, some portion may need to come from your own funds depending on the lender. FHA loans allow the entire 3.5% minimum to come from gift funds. You will need a signed gift letter confirming the money does not need to be repaid. Source: fanniemae.com.
How does the down payment affect my interest rate?
A larger down payment often qualifies you for a lower interest rate because it reduces the lender risk. Borrowers putting 20% or more down typically receive the best rates. The difference can be 0.125-0.5% between a 5% and 20% down payment. Even a small rate difference compounds significantly over a 30-year loan — 0.25% on a $380,000 loan adds roughly $20,000 in total interest.