Down Payment Calculator

Q: How much should I put down on a house?

Conventional loans allow as little as 3% down, FHA 3.5%, and VA/USDA 0% for eligible borrowers. Putting 20% down avoids PMI and lowers the payment, but waiting years to save 20% has costs too. The right answer balances monthly affordability, PMI, and how much cash you keep for emergencies.

Q: What is cash to close?

Cash to close is the total you bring to settlement: down payment plus closing costs (typically 2%-5% of the purchase price for origination, appraisal, title, escrow prepaids, and recording), minus any seller credits or earnest money already paid.

Q: Do I have to put 20% down to buy a house?

No — the median first-time buyer puts down far less (typically around 8-9%). Under 20% you'll usually pay PMI of roughly 0.3%-1.5% of the loan per year on conventional loans, which can be removed once you reach 20% equity.

Q: Can I use gift money for my down payment?

Usually yes. FHA loans allow the entire down payment to come from a gift; conventional loans typically require the borrower to contribute some of their own funds once the down payment drops below 20%. Lenders require a signed gift letter confirming the money doesn't need to be repaid.

Q: When can I stop paying PMI?

By federal law, conventional PMI must automatically cancel once your loan balance falls to 78% of the home's original value, and you can request cancellation yourself at 80%. Extra principal payments or a rise in home value can get you there faster than the amortization schedule alone.

See the down payment, estimated closing costs, and total cash to close for any home price — and compare every common down-payment percentage side by side.

Written by the Calculator Index team · Last reviewed September 2026

Estimated cash to close

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Down payment

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Closing costs

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Loan amount

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PMI required?

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Down %	Down payment	Loan amount	P&I payment (30 yr)	PMI

How much down payment do you actually need?

Loan type	Minimum down	Notes
Conventional	3%	PMI required under 20% down
FHA	3.5%	Mortgage insurance for most of the loan's life
VA	0%	Eligible veterans/service members; funding fee applies
USDA	0%	Eligible rural areas and income limits
Jumbo	10%+	Larger loans, stricter requirements

Worked example

On a $350,000 home with 10% down and 3% closing costs:

Down payment: 350,000 × 10% = $35,000 · Closing costs: ≈ $10,500 · Cash to close: ≈ $45,500

Because 10% < 20%, expect PMI of roughly $79–$390/mo until you reach 20% equity.

Worked example — reverse calculation: what price fits your savings?

A first-time buyer has $15,000 saved and wants to know what home price they can afford at a minimum-down 3% conventional loan with 3% closing costs (6% of price, total, needed as cash to close).

Price = savings ÷ 6% = 15,000 ÷ 0.06 = $250,000. That splits into a $7,500 down payment and $7,500 in closing costs — exactly using up the $15,000 saved, with no cushion left over for moving costs or immediate repairs.

The 20% question

Twenty percent down eliminates PMI and reduces interest paid, but it's not automatically the right target. If saving to 20% would take years, rising home prices can outrun your savings, and PMI — often 0.3%–1.5% of the loan annually — may be a reasonable price for buying sooner. A middle path many buyers use: put down what keeps the payment comfortable (test it in the mortgage calculator and against your affordability budget), keep a full emergency fund in reserve, and plan to remove PMI early via extra principal payments as you approach 80% LTV.

Typical PMI rate by down payment size

Down payment	Typical annual PMI rate
3%–5%	0.5%–1.5% of loan
5%–10%	0.4%–1.1% of loan
10%–15%	0.3%–0.9% of loan
15%–20%	0.15%–0.5% of loan
20%+	No PMI required

PMI rate also depends on credit score — a lower score at the same down payment tier can push the rate toward the high end of its range, sometimes enough to make a slightly larger down payment cheaper overall than paying the higher-rate PMI.

Common down payment mistakes

Draining savings entirely to hit 20%. Arriving at closing with no cash buffer left for moving costs, immediate repairs, or an emergency fund can turn a good rate decision into a cash-flow problem in month one.
Forgetting gift-fund paperwork. Lenders require a signed gift letter and often a paper trail for any down payment money that didn't come from the borrower's own accounts — surprises here can delay closing.
Assuming PMI disappears automatically at 20% equity from appreciation alone. Lender-ordered appraisals or specific request procedures are usually required to remove PMI early based on market value gains, not just paying down the loan.

Frequently asked questions

How much should I put down on a house?

Minimums run from 0% (VA/USDA) to 3–3.5% (conventional/FHA). 20% avoids PMI, but the right amount balances monthly cost, PMI, and cash kept for emergencies.

What is cash to close?

Down payment + closing costs (2%–5% of price) − seller credits and earnest money. It's the full amount you wire at settlement.

Do I have to put 20% down to buy a house?

No — typical first-time buyers put down around 8–9%. Under 20% you'll usually pay PMI, removable at 20% equity on conventional loans.

Can I use gift money for my down payment?

Usually yes, with a signed gift letter. FHA allows the entire down payment as a gift; conventional loans may require some borrower funds depending on the down payment size.

When can I stop paying PMI?

By law it must cancel automatically at 78% of original value; you can request cancellation yourself at 80%. Extra principal payments speed this up.

Related calculators

Note: Closing costs vary by state and lender; PMI estimates assume 0.3%–1.5% of loan per year. Not financial advice. Last reviewed: September 2026.