The full explanation
Each loan type has its own minimum: FHA requires at least 3.5% of the value, VA and USDA loans may require none, and conventional loans ask for more if you want to avoid private mortgage insurance. A larger down payment lowers the loan, the monthly payment and the total interest; many state programs help families put it together.
An example
Teresa wants a home in her county. Our calculator shows her the minimum down payment for each loan type and how her payment changes if she puts a little more down.
With real numbers
Computed with official data for the whole U.S. In your county the numbers may differ.
- Typical home value
- $332,700
- FHA minimum (3.5%)
- $11,645
- No PMI on a conventional loan (20%)
- $66,540
With the typical U.S. home value, $332,700, the minimum down payment on an FHA loan (3.5%) would be $11,645. Some conventional loans start at 3%: $9,981. For a conventional loan without private mortgage insurance (PMI), you would need $66,540 (20%).
Computed with: American Community Survey (ACS) 5-year estimates (2020–2024) · HUD Handbook 4000.1 (Update 18), II.A.2.a.iv — Minimum Required Investment (October 17, 2026) · Fannie Mae Selling Guide B5-6-01 — HomeReady Mortgage Loan and Borrower Eligibility (October 17, 2026) · Fannie Mae Selling Guide B7-1-01 — Provision of Mortgage Insurance (October 17, 2026)
You will see it in…
- The Loan Estimate and Closing Disclosure (“Down Payment/Funds from Borrower”)
- Down payment assistance program requirements
- Our mortgage calculator, with each loan's minimum rule
