Down Payment Calculator
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Get The Lowdown On Down Payments
A down payment is the amount you’ll pay upfront to buy a house. Most home buyers pay between 3% to 20% of the home price, with the average down payment being around 6%.
If you qualify for a VA loan, a down payment of zero may be possible. However, you’ll still need to consider other fees like closing costs.
Your required down payment will be determined by the type of mortgage you qualify for, your financial situation, and the type of property you’re buying.
Putting more money down helps to lower your total loan amount and can get you a better interest rate.
The average down payment on a house is around 6% for first-time home buyers.
Rocket Mortgage offers affordable loan options that let qualified home buyers put as little as 1% to 3% down. If you qualify for a VA loan, you may not need to put any money down.
There are also down payment assistance programs available to first-time home buyers. Keep in mind some programs require a minimum credit score.
Note: If you put less than 20% down on a conventional loan, you may be required to pay private mortgage insurance (PMI), which can increase your total monthly payment or interest rate.
A larger down payment usually means smaller monthly mortgage payments.
Private mortgage insurance (PMI) is usually required for conventional mortgages if the home buyer puts less than 20% down. PMI protects your lender if you stop making payments on your loan.
After you buy the home, you can usually stop paying PMI once you’ve reached 20% to 22% equity in your home.
Note: PMI only applies to conventional loans. Most conventional loans require:
- 620 or higher credit profile
- No more than 50% debt-to-income ratio
- Loan amount limits based on your state
Other types of loans have other mortgage insurance. For example, FHA loans require mortgage insurance premiums (MIP), which operate differently from PMI.
Yes, but you may need to prove to your lender that you won’t have to pay back the money in the future.
You can do this by asking the person who gave you the money to write a gift letter. This is a statement ensuring your lender that the money that came into your account is a gift and not a loan.
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†Client will receive a closing credit of $1,000 on their Closing Disclosure when they lock their rate on a cash-out transaction. Offer valid between 12:01 a.m. ET on February 1, 2022, and 11:59 p.m. ET on February 14, 2022. This offer cannot be retroactively applied to previously closed loans. Offer does not apply to Charles Schwab loans, portfolio loans, team member loans, Amex, HLBP, team member referrals and applications from TPO team members. Rocket Mortgage reserves the right to cancel this offer at any time. Acceptance of this offer constitutes acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. Offer may not be redeemed for cash or credit. Offer is nontransferable. This is not a commitment to lend. Additional restrictions/conditions may apply. Offer not valid with any additional discounts or promotions.