A good down payment for a house typically depends on your financial situation and the type of loan you choose, but here are some common guidelines based on recent data:
- The median down payment for all home buyers in 2024 was around 18% of the home purchase price.
- For first-time home buyers , the median down payment was lower, around 9%.
- For repeat buyers , the median down payment was higher, about 23%.
While the traditional advice is to put down 20% to avoid paying private mortgage insurance (PMI) and to get better loan terms, many buyers put down less. Some loan programs allow down payments as low as 3% (conventional loans) or even 0% (VA or USDA loans), depending on eligibility. Here are some specifics:
- Conventional loans often require a minimum of 3-5% down.
- FHA loans require at least 3.5% down if your credit score is 580 or higher.
- VA and USDA loans can require zero down.
- A down payment of less than 20% usually means you'll pay for private mortgage insurance.
Choosing a down payment amount is about balancing affordability now with long- term costs such as interest rates and mortgage insurance. If 20% would deplete your savings, consider a smaller down payment that still allows you to keep reserves for emergencies and other expenses.
