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FAQ

How much should I put down on a house?

Short answer

The minimum depends on your loan type: as low as 0% (VA/USDA), 3.5% (FHA), or 3–5% (conventional). Putting down 20% on a conventional loan avoids PMI, but most buyers put down far less and still buy successfully.

Bri Bond-Erwin

Written by Bri Bond-Erwin

· Updated

The full explanation

The right down payment is different for every buyer. Here's how to think through it:

Minimum Requirements by Loan Type

  • VA Loan: 0% (for eligible veterans and active-duty service members)
  • USDA Loan: 0% (for eligible rural areas)
  • FHA Loan: 3.5% (with a 580+ credit score)
  • Conventional Loan: 3–5% minimum, though 20% avoids PMI

The 20% Myth

You do not need 20% down to buy a house. This is one of the most common misconceptions that prevents people from exploring homeownership. The 20% figure comes from the threshold at which PMI (private mortgage insurance) is no longer required on conventional loans.

What to Consider

Putting more down reduces your loan amount, lowers your monthly payment, and eliminates PMI at 20%. But it also ties up cash that could stay liquid or be used for other financial goals.

Putting less down allows you to buy sooner, keep more cash on hand, and potentially benefit from appreciation while building equity. The tradeoff is a higher monthly payment and possible PMI costs.

There's no universally right answer. A lender can help you model different down payment scenarios and compare the monthly costs so you can make an informed decision.

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Bri's approach is education-first, which means your questions are always welcome, even before you're ready to buy or sell.

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