Saving for a down payment is the biggest hurdle for most first-time homebuyers. Our calculator determines how much you need based on your target home price and loan type, creates a monthly savings plan to reach your goal, and shows how different down payment amounts affect your mortgage payment and whether PMI applies.
Minimum requirements vary by loan type: Conventional loans can go as low as 3% (first-time buyers) or 5%. FHA loans require 3.5% with a 620+ credit score or 10% with a 580–619 score. VA loans (veterans) and USDA loans (rural areas) offer 0% down for qualifying borrowers.
20% is the traditional benchmark—it eliminates PMI and qualifies you for better rates. But a 20% down payment on a median $400,000 home is $80,000, which takes many buyers years to save. First-time buyer programs at 3–5% down with PMI can make homeownership accessible sooner.
DPA programs offer grants, forgivable loans, or low-interest loans to help buyers with down payment and closing costs. State Housing Finance Agencies (HFAs), local governments, and employers offer these programs. Income and purchase price limits apply, but many first-time buyers qualify.
Yes. Conventional, FHA, and VA loans allow down payment gift funds from family members with documentation (a gift letter stating it is not a loan). Some conventional loans require the buyer to contribute a minimum amount (typically 5%) of their own funds if the down payment is below 20%.
The right answer depends on rent vs ownership costs and home price appreciation in your market. If home prices are rising faster than you can save, buying sooner may make sense even with PMI. If the market is flat and you can save quickly, waiting for 20% avoids PMI and gets better rates.
In the US, the term commonly used is PMI (Private Mortgage Insurance) for conventional loans. FHA loans require both an upfront mortgage insurance premium (1.75% of loan) and an annual MIP. PMI on conventional loans can be removed when equity reaches 20%, while FHA MIP may be permanent on newer loans.