# How Much Down Payment Do You Need for a House?

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Page title: How Much Down Payment Do You Need? | Valor Mortgage

By [Christopher Armantrout](https://valor.mortgage/about-us/), Licensed Mortgage Loan Originator · NMLS [#1210804](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804)
Published May 15, 2026 · Last updated October 26, 2026
Rules accurate as of October 2026

Quick answer

Less than most people think. You don’t need 20%. VA and USDA loans allow 0% down for eligible buyers, some conventional loans allow 3%, and FHA allows 3.5% with a credit score of 580 or higher.

Putting down 20% on a conventional loan avoids private mortgage insurance, but it isn’t required to buy. In NAR’s 2025 survey, the median first-time buyer put down 10%. On a $350,000 home, minimum down payments range from $0 to $12,250.

Program figures on this page were verified in October 2026. Program terms and eligibility are subject to VA, USDA, HUD, Fannie Mae, Freddie Mac and lender guidelines and may change.

At a glance: minimum down payments

- **VA:** 0% for eligible veterans and service members
- **USDA:** 0% in eligible rural areas, within income limits
- **Conventional:** 3% on some programs; 5% is common
- **FHA:** 3.5% with a 580+ score; 10% from 500 to 579
- **20% down:** avoids PMI on a conventional loan; not required
- **Help:** gifts and THDA assistance can cover part of it

## What is the minimum down payment for each type of loan?

| Loan type | Minimum down | Mortgage insurance | Who it fits |
|---|---|---|---|
| [VA](https://valor.mortgage/va-loans/) | 0% | None monthly; one-time funding fee, waived for many disabled veterans | Eligible veterans, service members and some surviving spouses |
| [USDA](https://valor.mortgage/usda-loan/) | 0% | 1% upfront guarantee fee and 0.35% annual fee | Homes in eligible rural areas, households within income limits |
| [Conventional](https://valor.mortgage/conventional-loans/) | 3% (some first-time and income-based programs); 5% common | PMI below 20% down; removable later | Borrowers with solid credit |
| [FHA](https://valor.mortgage/fha-loans/) | 3.5% (580+ score); 10% (500–579) | 1.75% upfront plus annual premium; for the life of the loan with less than 10% down | Lower scores or higher debt ratios |
| [Jumbo](https://valor.mortgage/jumbo-loans/) | Often 10%–20%, set by each lender | Varies | Loan amounts above the conforming limit |

Program terms and eligibility are subject to VA, USDA, HUD, Fannie Mae, Freddie Mac and lender guidelines and may change.

## What does each option look like on a $350,000 home?

Here is an illustrative Robertson County purchase at $350,000:

| Down payment | Cash down | Base loan amount |
|---|---|---|
| 0% (VA or USDA) | $0 | $350,000, plus the financed funding or guarantee fee |
| 3% (conventional) | $10,500 | $339,500 |
| 3.5% (FHA) | $12,250 | $337,750, plus 1.75% upfront mortgage insurance |
| 5% (conventional) | $17,500 | $332,500 |
| 10% | $35,000 | $315,000 |
| 20% (conventional, no PMI) | $70,000 | $280,000 |

Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Closing costs are separate; see [closing costs vs. down payment](https://valor.mortgage/closing-costs-vs-down-payments/).

## Do you need 20% down to buy a house?

No. 20% is a threshold, not a requirement. On a conventional loan, 20% down means no private mortgage insurance (PMI). Below 20%, you pay PMI, but it isn’t permanent. Under the [Homeowners Protection Act](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/), you can ask to cancel it once your balance is scheduled to reach 80% of the home’s original value. It ends automatically at 78%, as long as you’re current on payments.

Most buyers don’t wait for 20%. In the [National Association of REALTORS® 2025 Profile of Home Buyers and Sellers](https://www.nar.realtor/news/real-estate-news/nar-2025-profile-of-home-buyers-sellers-reveals-market-extremes), the median down payment was 10% for first-time buyers and 23% for repeat buyers, who often bring equity from a home they sold.

## Should you put more down, or keep your cash?

| A larger down payment | A smaller down payment |
|---|---|
| Smaller loan and less interest over time | You buy sooner instead of saving for years |
| Less or no mortgage insurance | More cash left for reserves, repairs and moving |
| More equity if prices dip or you sell soon | Mortgage insurance adds to the cost until it is removed |
| May improve pricing on some programs | A larger loan to qualify for |

The right amount depends on your rate, mortgage insurance, the loan amount, lender pricing and how long you plan to stay. Don’t empty your savings to reach a round number. Homes need repairs, and lenders sometimes require reserves after closing.

## Where can the down payment come from?

- **Savings and checking**, usually with two months of statements. Large new deposits need a paper trail.
- **Gifts from family**, with a signed gift letter and proof of the transfer. Most programs allow this.
- **Down payment assistance.** [THDA’s Great Choice Plus](https://valor.mortgage/tennessee-first-time-homebuyer-programs/) and other [assistance programs](https://valor.mortgage/down-payment-assistance/) can cover part of the down payment and closing costs for eligible buyers. Program terms and eligibility are subject to THDA and lender guidelines and may change.
- **Proceeds from selling a home**, or equity in land you own.
- **Retirement accounts**, through a loan or withdrawal. Check the tax and penalty rules with a tax advisor first.

## Down payment FAQ

### Can I buy a house with no down payment?

Yes, if you qualify for a VA loan as an eligible veteran or service member, or a USDA loan on a home in an eligible rural area within the income limits. THDA assistance can also cover the minimum down payment on some loans. Program terms are subject to agency and lender guidelines.

### How much do first-time buyers usually put down?

The median first-time buyer put down 10% in NAR’s 2025 Profile of Home Buyers and Sellers. Many put down far less using 3% conventional, 3.5% FHA, or 0% VA and USDA loans. The right amount depends on your savings, credit and goals.

### Is it worth paying PMI to buy sooner?

Often, but it depends. PMI adds to your cost until it is removed, while waiting to save 20% means more years of rent and a price that may rise. Compare the total cost each way over the years you plan to own the home.

### Does the down payment include closing costs?

No. Closing costs are separate and commonly run about 2% to 5% of the price. Seller credits, lender credits and assistance programs can reduce them, within each loan program’s limits.

### Can my whole down payment be a gift?

On many loans, yes. FHA, VA, USDA and many conventional primary-home loans allow the full down payment to come from an acceptable donor, usually a relative, with a signed gift letter and a documented transfer. Some conventional cases require part of it from your own funds.

## Where these figures come from

| Figure | Source | As of |
|---|---|---|
| Median down payment, 10% first-time / 23% repeat | [NAR 2025 Profile of Home Buyers and Sellers](https://www.nar.realtor/news/real-estate-news/nar-2025-profile-of-home-buyers-sellers-reveals-market-extremes) | Transactions Jul 2024–Jun 2025 |
| PMI cancellation at 80% and 78% | [CFPB, Homeowners Protection Act](https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/) | Retrieved Oct 26, 2026 |
| VA funding fee | [VA, Funding fee and closing costs](https://www.va.gov/housing-assistance/home-loans/funding-fee-and-closing-costs/) | Rates effective Apr 7, 2023 |
| FHA down payment and mortgage insurance | [HUD Handbook 4000.1](https://www.hud.gov/hud-partners/single-family-handbook-4000-1) | Current handbook |
| USDA eligible areas and income limits | [USDA eligibility site](https://eligibility.sc.egov.usda.gov/) | Retrieved Oct 26, 2026 |

## Related guides

- [Can you buy a home with no down payment in Tennessee?](https://valor.mortgage/financing-a-home-with-0-down-payment/)
- [Closing costs vs. down payment](https://valor.mortgage/closing-costs-vs-down-payments/).
- [How much house can I afford?](https://valor.mortgage/how-much-home-can-you-buy/)
- [Tennessee first-time homebuyer programs](https://valor.mortgage/tennessee-first-time-homebuyer-programs/).
- [Robertson County mortgage guide](https://valor.mortgage/mortgage-loans-robertson-county-tn/).
- [About Christopher Armantrout](https://valor.mortgage/about-us/), the licensed originator who wrote this page.

## Not sure how much to put down? Talk to Valor Mortgage.

I’ll show you the same home at several down payments, with the cash needed, the mortgage insurance and the total cost of each, so you can choose the amount that fits your savings and your plans.

[Call me at (615) 671-9178](tel:+16156719178). That’s the fastest way to get a straight answer on what you’d qualify for and what each down payment option would look like for you.

If it’s after hours, [grab a time on my calendar](https://valor.mortgage/book-your-appointment/). Pick a slot that works and I’ll call you then.

If your life is too chaotic for a phone call right now — I understand — [start an application](https://valor.mortgage/purchase/) and I’ll review it and reach out with a plan.

About the author

[Christopher Armantrout](https://valor.mortgage/about-us/)

Owner & Senior Loan Officer, Valor Mortgage NMLS #1210804

Christopher is a licensed Mortgage Loan Originator in the State of Tennessee and has been originating home loans since 2015. He founded Valor Mortgage in Springfield in 2019 and works with veterans, first-time buyers, self-employed borrowers, and families across Robertson County and Middle Tennessee.

[More about Christopher](https://valor.mortgage/about-us/) [Verify this license on NMLS](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804)

**Valor Mortgage, LLC** · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · [NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804)

The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.

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## Contact Valor Mortgage

- Christopher Armantrout, Senior Loan Officer, NMLS #1210804
- Phone: [(615) 671-9178](tel:+16156719178)
- Email: [christopher@valor.mortgage](mailto:christopher@valor.mortgage)
- Office: 724 S Main St, Springfield, TN 37172
- [Book an appointment](https://valor.mortgage/book-your-appointment/) · [Apply online](https://valor.mortgage/home-application/) · [Contact page](https://valor.mortgage/contact-us/)

Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 ([NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1249911)). Christopher Armantrout, Loan Officer, NMLS #1210804. Licensed in Tennessee. Equal Housing Opportunity.

All loan programs, rates, terms, and conditions are subject to change without notice. Loan approval is based on borrower qualification, credit review, income verification, and property eligibility. Not all applicants will qualify. Not a commitment to lend.