How Much Money Do You Need for a Mortgage Down Payment in 2026?

The minimum mortgage down payment in the United States ranges from 0% on some VA and USDA loans to 3% or 3.5% on certain conventional and FHA loans. A 20% down payment is not required for every purchase. Planning your mortgage down payment in 2026 also means budgeting for closing costs, moving expenses, initial repairs, and emergency savings.

A down payment is the part of the purchase price you pay upfront instead of borrowing. The formula is: down payment = purchase price × down payment percentage. The remainder is your loan, and the loan divided by the home's value is your loan-to-value (LTV) ratio.

• $200,000 home: $6,000 at 3%, $10,000 at 5%, $20,000 at 10%, $40,000 at 20%.
• $300,000 home: $9,000 at 3%, $15,000 at 5%, $30,000 at 10%, $60,000 at 20%.
• $1,000,000 home: $100,000 at 10% or $200,000 at 20%.

A 3% down payment is usually impractical at $1 million. Conforming loan limits apply to the loan amount, and 3% down creates a $970,000 loan that exceeds the baseline limit in most areas. Jumbo loans typically require larger down payments and cash reserves.

• Conventional: 3% on some programs; eligibility depends on the program.
• FHA: 3.5% for borrowers who meet FHA credit and underwriting requirements.
• VA: 0% for eligible service members, veterans, and certain surviving spouses.
• USDA: 0% for eligible buyers in USDA-designated rural areas, subject to income limits.

First-time buyers can skip the down payment only through VA or USDA loans, and closing costs still apply.

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Minimums come from both the program and the lender. FHA guidelines allow 3.5% down with a score of 580 or higher and require 10% down for scores of 500 to 579. Conventional programs commonly require about 620 .

Usually, yes. A conventional loan with less than 20% down typically requires private mortgage insurance (PMI), which protects the lender and raises your monthly payment. FHA loans carry their own mortgage insurance premiums. One commonly cited PMI range is 0.2% to 1.5% of the loan per year.

Cash to close is your down payment plus closing costs and prepaid items, minus credits such as earnest money already paid. Closing costs (lender fees, appraisal, title, prepaid taxes, insurance) commonly fall between 2% and 5% of the purchase price as an initial U.S. estimate.

On a 300,000homewith5%down(15,000), closing costs of $6,000 to $15,000 bring estimated cash to close to $21,000 to $30,000, before credits and reserves.

Subtract everything else you need from your available savings: down payment budget = savings − existing commitments − emergency reserve − moving and repairs − closing costs.

Hypothetical example: $45,000 in savings, minus a $10,000 reserve, $4,000 for moving and repairs, and $9,000 in closing costs leaves $22,000, about 7.3% of a $300,000 price. A first-time home buyer down payment calculator can run the same math at other prices.

Keeping cash available covers emergencies and unexpected repairs without extra borrowing. Choose a down payment that balances monthly affordability with savings reserves.

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