How Much Down Payment Do I Need — And Do I Qualify for Down Payment Assistance?
When you're thinking about buying a home, one of the first big questions that comes up is how much down payment you’ll need.
You might also be wondering whether down payment assistance is an option for you.
Let’s break it down simply.
How Much Down Payment Do You Really Need?
The old rule of thumb you might have heard is that you need 20% down to buy a home.
While putting 20% down has benefits (like avoiding private mortgage insurance, or PMI), it’s definitely not required.
Depending on the type of loan you use, you might be able to put down:
Conventional loans: As little as 3% down for qualified buyers
FHA loans: 3.5% down minimum
VA loans (for veterans and active military): 0% down
USDA loans (for eligible rural properties): 0% down
So in most cases, you don’t need a giant 20% saved up.
You could buy a $300,000 house with as little as $9,000 down with the right loan program.
👉 Pro Tip: Even if you put less than 20% down, you can often remove PMI later once you build enough equity.
What About Closing Costs?
Besides the down payment, don’t forget about closing costs.
These are usually 2–5% of the home price and cover things like title insurance, lender fees, and taxes.
Sometimes, your lender can help structure the loan so you can roll closing costs into your purchase, or negotiate for the seller to cover some.
Do I Qualify for Down Payment Assistance?
Down payment assistance (DPA) programs are designed to help first-time buyers or low-to-moderate income buyers cover part—or sometimes all—of their down payment or closing costs.
Here’s what you typically need to qualify:
Income limits: Many programs require your household income to be under a certain threshold
Purchase price limits: Some programs cap the value of the home you can buy
First-time buyer status: You often qualify if you haven’t owned a home in the last 3 years
Credit requirements: Usually a minimum credit score (often around 620–640)
Location: Some DPA programs are local or state-based
There are thousands of DPA programs nationwide, and new ones launch all the time.
👉 Pro Tip: Even if you don't think you qualify, it's worth checking! Many people are surprised to find they’re eligible.
How to Find the Right Option for You
The best thing you can do is talk to a mortgage advisor early in your homebuying journey.
They can run the numbers for you, find out if you qualify for assistance, and map out your total cash-to-close so you’re prepared.
Remember:
You don't have to do this alone.
There are more options and help available than most people realize!
Helpful References:
Consumer Financial Protection Bureau – Mortgage Basics
HUD – State and Local Down Payment Assistance Programs
