What down payment percentage is typically required to buy a house?

Down payment requirements vary by loan type; conventional loans often allow as little as 3% down, while FHA loans typically require 3.5%, and some programs offer 0% down for qualified buyers. A 20% down payment is traditionally recommended to avoid private mortgage insurance (PMI), but many lenders accept lower amounts.

How does the down payment amount affect my monthly mortgage payment?

A larger down payment reduces the total loan amount, which typically lowers your monthly principal and interest payment. It may also eliminate the need for private mortgage insurance, further reducing monthly costs. The exact impact depends on your interest rate, loan term, and other financing factors.

Can I buy a home with a low down payment if I have limited savings?

Yes, many loan programs allow down payments as low as 3% or 3.5%. However, lower down payments may result in higher monthly payments, mortgage insurance requirements, or different interest rates. It's important to balance the desire for low upfront costs with long-term affordability and total loan cost.

What's the difference between putting 3% down versus 20% down?

Putting 3% down requires a smaller upfront cash outlay but typically includes private mortgage insurance (PMI) until you reach 20% equity. A 20% down payment avoids PMI and reduces the loan amount, potentially lowering monthly payments and total interest paid over the life of the loan. The best choice depends on your savings timeline, monthly budget, and long-term financial goals.

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Down Payment Calculator

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Calculates how much down payment to save based on home price, savings rate, and timeline.

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About this tool

What Down Payment Calculator does

A down payment calculator that helps prospective homebuyers determine the upfront cash needed for a home purchase. Users input key variables such as target home price, desired down payment percentage, and loan terms to receive an estimated breakdown of required funds. The tool models various scenarios to help individuals assess their financial readiness before making a mortgage commitment. It provides clarity on how different down payment amounts affect loan structure and monthly costs, supporting informed decisions about saving goals and affordability. The calculator is integrated within NerdWallet's broader mortgage resource hub, offering context about typical down payment expectations and how they impact loan terms. Unlike standalone calculators, it connects the down payment decision to credit score insights, loan option comparisons, and broader home buying guidance within a single platform, allowing users to explore financing implications without leaving the site.

Step by step

How to use the NerdWallet Financial Calculators Down Payment Calculator

1
Enter the target home price you are considering purchasing
2
Select or input your desired down payment percentage or amount
3
Review the calculated upfront cash requirement and resulting loan amount
4
Adjust the down payment percentage to see how it affects monthly payments and loan terms
5
Explore related NerdWallet resources on mortgage options and affordability guidance

Is it right for you

Best for

First-time homebuyers and prospective purchasers who want to understand how different down payment amounts affect loan structure, monthly payments, and overall affordability before committing to a mortgage.

Limitations

Provides estimates based on input variables; actual loan terms may vary by lender and credit profile
Does not include property taxes, insurance, or closing costs in the core calculation
Results are general guidance and should be verified with a licensed mortgage professional

Questions

Down Payment Calculator FAQ

What down payment percentage is typically required to buy a house?: Down payment requirements vary by loan type; conventional loans often allow as little as 3% down, while FHA loans typically require 3.5%, and some programs offer 0% down for qualified buyers. A 20% down payment is traditionally recommended to avoid private mortgage insurance (PMI), but many lenders accept lower amounts.
How does the down payment amount affect my monthly mortgage payment?: A larger down payment reduces the total loan amount, which typically lowers your monthly principal and interest payment. It may also eliminate the need for private mortgage insurance, further reducing monthly costs. The exact impact depends on your interest rate, loan term, and other financing factors.
Can I buy a home with a low down payment if I have limited savings?: Yes, many loan programs allow down payments as low as 3% or 3.5%. However, lower down payments may result in higher monthly payments, mortgage insurance requirements, or different interest rates. It's important to balance the desire for low upfront costs with long-term affordability and total loan cost.
What's the difference between putting 3% down versus 20% down?: Putting 3% down requires a smaller upfront cash outlay but typically includes private mortgage insurance (PMI) until you reach 20% equity. A 20% down payment avoids PMI and reduces the loan amount, potentially lowering monthly payments and total interest paid over the life of the loan. The best choice depends on your savings timeline, monthly budget, and long-term financial goals.

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