House Down Payment Calculator

Figuring out how much down payment you need for a house depends on loan type, credit score, and lender overlays — not a single magic number. Conventional loans can go as low as 3% down for qualified first-time buyers, FHA loans require 3.5% with a 580+ FICO, VA and USDA loans allow 0% down for eligible borrowers, and jumbo loans typically want 10–20%. On a $400,000 home, that ranges from $0 (VA) to $14,000 (FHA) to $80,000 (20% conventional, which also eliminates PMI). This tool calculates all scenarios side by side.

Beyond the down payment itself, you should budget 2–5% of the purchase price for closing costs and keep 2–6 months of mortgage payments in reserves. For example, a $400,000 home with 5% down ($20,000) plus 3% closing costs ($12,000) means $32,000 cash to close, before reserves. Private mortgage insurance (PMI) typically runs 0.3%–1.5% of the loan annually when you put less than 20% down on a conventional loan, adding $100–$500/month on a typical mortgage. Use the calculator with your own numbers — every input below is fully adjustable.

How it works: Enter the home price, choose a loan type, and set your credit score and expected interest rate. The tool returns the minimum down payment, total cash to close, estimated monthly principal and interest, and PMI when applicable.

How Much Down Payment Do You Really Need for a House in 2026?

The right down payment balances loan eligibility, monthly affordability, and how much cash you keep in reserves. Here is how each loan program, credit tier, and price point shapes the answer.

Minimum down payment by loan type (2026)

Down payment & monthly cost on a $400,000 home (6.5% / 30-yr)

The 20% myth — and when it actually matters

The '20% down' rule is a guideline, not a requirement. The median first-time buyer in 2026 puts down about 6–8%, and most loan programs accept far less. The real reasons 20% still matters: you avoid PMI on conventional loans, qualify for better rates, lower your monthly payment, and have stronger offers in competitive markets. Rule of thumb: if you can put 20% down without draining your emergency fund, it usually pays off within 5–7 years. If hitting 20% means zero reserves, putting 5–10% down and keeping cash on hand is the safer move.

How credit score changes the math

Your FICO score affects both the interest rate and the PMI rate. A borrower with a 760+ score might pay 0.30% annual PMI, while a 620 score pays closer to 1.00–1.50%. On a $380,000 loan, that gap is roughly $250/month — more than the cost of raising your score by paying down credit cards before applying. Rule of thumb: every 20-point FICO jump above 660 typically saves 0.125–0.25% on your rate. Pull your score 6 months before house hunting and dispute any errors immediately.

Closing costs: the hidden second down payment

Closing costs typically run 2–5% of the purchase price and include lender fees, title insurance, appraisal, escrow setup, prepaid taxes, and prepaid homeowners insurance. On a $400,000 home, that is $8,000–$20,000 on top of your down payment. Some can be negotiated: ask the seller for credits (especially in slower markets), shop title insurance independently, and compare lender Loan Estimates side by side. Rule of thumb: budget 3% for planning purposes, then refine once you have an actual Loan Estimate within 3 days of applying.

PMI: when it applies and how to remove it

Private mortgage insurance protects the lender if you default — it does nothing for you. On conventional loans, PMI is automatically required when you put less than 20% down and ranges from roughly 0.30% to 1.50% of the loan annually. The good news: you can request removal once you reach 20% equity, and it cancels automatically at 22%. FHA's MIP is harder to escape — with less than 10% down, it lasts the entire loan term unless you refinance. Rule of thumb: if you plan to stay 7+ years and put less than 10% down, an FHA-to-conventional refinance is often worth modeling.

Reserves: why lenders (and you) want them

Most lenders want to see 2–6 months of mortgage payments left in the bank after closing. Jumbo loans often require 6–12 months. Beyond loan approval, reserves protect you against job loss, repairs, and rate shocks on adjustable products. A new HVAC system runs $7,000–$15,000, a roof $10,000–$30,000, and these don't wait for payday. Rule of thumb: target 3 months of full housing payment (P&I + taxes + insurance + HOA) in liquid savings before closing, separate from your general emergency fund.

Down payment assistance programs

Most states offer down payment assistance (DPA) programs — grants, forgivable loans, or deferred second mortgages — for first-time or moderate-income buyers. Amounts range from $5,000 to $50,000+ depending on the program and income limits. Many require you to complete a homebuyer education course (often 8 hours, free or under $100) and use an approved lender. Rule of thumb: check your state housing finance agency, your city/county housing department, and ask any lender for their list of compatible DPA programs. Stacking a 3% conventional loan with a $10,000 DPA can drop your out-of-pocket dramatically.

Bigger down vs. investing the difference

Some buyers debate putting 20% down versus 5% and investing the rest. The math depends on your mortgage rate, expected investment returns, and risk tolerance. At a 6.5% mortgage rate, paying down the loan is a guaranteed 6.5% return — hard to beat consistently after tax. But you also lose liquidity and flexibility. Rule of thumb: if your mortgage rate is above 6%, lean toward larger down payments; if rates drop below 5% on a future refinance, the invest-the-difference argument gets stronger. Always max out employer 401(k) matches first — that beats any down payment optimization.

How home price affects your down payment strategy

On a $250,000 home, 20% down ($50,000) is reachable for many savers within 3–5 years. On an $800,000 home, 20% is $160,000 — often unrealistic without selling existing equity. Higher-priced homes also push you into jumbo territory (above the 2026 conforming limit of $806,500 in most counties, higher in high-cost areas), where lenders typically demand 10–20% minimum and stronger reserves. Rule of thumb: in expensive markets, aim for 10% down on a conventional loan, avoid jumbo if possible by staying under the conforming limit, and prioritize a low debt-to-income ratio over maximizing the down payment.

How This Calculator Works: Methodology & Parameter Explanations

Core formula: down_payment = home_price × max(down_payment_percent, loan_minimum); loan_amount = home_price − down_payment; monthly_P&I = loan_amount × (r × (1+r)^n) / ((1+r)^n − 1) where r = interest_rate/12 and n = loan_term × 12; PMI_monthly = loan_amount × pmi_rate / 12 (pmi_rate determined by loan type and credit score, 0 when down ≥ 20% on conventional).

Parameter explanations

Assumptions

Down payment percentages and price defaults shown in the seed (and any example numbers like '20%' or '$400,000') are illustrative — the calculator works for any home price, percent, and loan type you enter.

PMI rates are modeled in tiers by FICO score using typical 2026 industry ranges; actual lender quotes vary by debt-to-income, property type, and occupancy.

Monthly payment is principal and interest only — it excludes property taxes, homeowners insurance, HOA dues, and flood insurance, which can add $300–$1,000+ per month.

Conforming loan limit assumed at $806,500 for 2026 (higher in designated high-cost counties); loans above this are treated as jumbo with 10% minimum down.

Interest rate is treated as a fixed 30-year (or chosen term) rate; adjustable-rate mortgages are not modeled.

Parameter meanings