Typical down payment on a house: What buyers should know

A down payment is a lump sum that you pay upfront when you buy a home. The size of your down payment is reflected as a percentage of the total purchase price. Making a larger down payment reduces the amount you must borrow and can help you save money.

A common misconception is that you have to wait until you’ve saved up to make a 20% down payment. Most loans are available for a smaller down payment. Some don’t require a down payment at all. Here, we’ll take a closer look at the average down payment home buyers are making these days.

Key takeaways:

• The average down payment has fallen to 15% as housing prices have increased.
• While putting 20% down eliminates private mortgage insurance (PMI) on conventional loans, you don’t have to make a down payment that large to buy a home.
• Conventional loans allow down payments as low as 3%, Federal Housing Administration (FHA) loans require 3.5%, and government-backed U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) loans allow 0% down for eligible borrowers.

How much is the typical down payment on a house?

According to 2026 Redfin data, the average down payment fell to 15%, down 1.5% from the previous year. The typical down payment for a home is now $64,000, though it can vary depending on the market.

The data shows home buyers making smaller down payments to hang onto cash amid broader economic uncertainty. First-time home buyers typically make a smaller down payment, which is often less than 10%. For many first-time buyers, it can take time to save up enough to make a down payment without relying on the money you make from selling a previous house.

Is it better to put a large down payment on a house?

Making a larger down payment can help you save money because it can help you score a lower interest rate. If you get a conventional loan and your down payment is at least 20%, you can save even more by avoiding PMI.

However, it can take a long time for first-time buyers to save up any down payment, let alone a big one. Waiting until you can make a larger down payment can delay your home-buying goals and cost you in other ways.

For example, you could end up paying more in rent than you would save by eliminating PMI and reducing the amount of interest you pay. You could also end up missing an opportunity to build equity in a home that you purchase. You can use our rent vs. buy calculator to illustrate how much your down payment can impact whether it’s a good time for you to rent or buy.

Getting preapproved for a mortgage will tell you how much a lender is willing to lend you and how much house you can afford. This can help you determine how much of a down payment you can make.

Median down payment by market

The median down payment differs significantly by market because the purchase price of homes varies so much based on where you’re buying. According to 2026 Redfin data, San Jose, San Francisco, and Anaheim, California saw the highest down payment percentages, while the average down payments were lowest in Virginia Beach and Detroit.

Down payment amount by purchase price: At a glance

Because down payments are reflected as a percentage of the home price, it may not always be immediately obvious how much money you’ll need. Here’s a look at what a 3%, 10%, and 20% down payment would look like for different homes based on purchase price.

Down payment vs. closing costs

A common mistake first-time home buyers make is assuming their down payment is the only upfront cash requirement at closing.

• Down payment: Applied directly toward the purchase price of the home, reducing the total loan balance you borrow from your mortgage lender.
• Closing costs: These are all the fees required to get a mortgage and typically range from 3% – 6% of the total loan amount. Closing costs cover appraisals, title searches, title insurance, attorney fees, lender origination charges, and prepaid tax/insurance escrow reserves.

For example, if you purchase a $350,000 home with a 3.5% down payment of $12,250, and you pay 3% in closing costs (about $10,100), you’ll need to have roughly $22,400 in cash up-front.

How much should you put down on a house?

Minimum down payment requirements vary depending on the type of loan you choose. Here are the major loan programs and the down payment requirement for each. You can use Rocket Mortgage’s down payment calculator to see how your down payment can impact the size of your loan. You can also use our mortgage calculator to see how it affects your monthly payment.

Conventional loan

Conventional loans are the most common mortgage option and are not backed by any government program. The minimum down payment for a conventional mortgage loan is 3%² the purchase price if you’re a first-time home buyer, though many lenders will require a down payment of at least 5%. Conventional loans can be cheaper than FHA loans but come with stricter credit requirements. You’ll typically need a credit score of at least 620 to qualify for a conventional loan.

If you get a conventional loan and make a down payment that’s less than 20%, you’ll need to purchase private mortgage insurance. PMI can be avoided if your down payment is at least 20%.

FHA loan

A Federal Housing Administration (FHA) loan is a government-backed loan with looser requirements than a conventional loan. You can get a loan approved by some lenders with a credit score as low as 500, but you’ll need a credit score of 580³ or higher to put down only 3.5% at closing. With a credit score in the 500 – 579 range, you’ll need a down payment of 10%. For borrowers with lower credit scores and a smaller down payment, FHA loans can be cheaper than conventional loans.

VA loan

A U.S. Department of Veterans Affairs (VA) loan is a government-backed loan that’s offered to eligible current and former members of the Armed Forces and the National Guard, along with surviving spouses who meet certain eligibility criteria. You can buy a home with no money down if you qualify for a VA loan.

USDA loan

A U.S. Department of Agriculture (USDA) loan is a government-backed loan offered to low- and moderate-income borrowers in certain areas. Like a VA loan, a USDA loan allows you to purchase a house with no money down.

Rocket Mortgage does not offer USDA loans at this time.

Jumbo loan

Jumbo loans are non-conforming mortgages that exceed local Federal Housing Finance Agency (FHFA) loan limits. Because jumbo loans represent higher risk for lenders, you’ll typically need a down payment of at least 10% – 20%, a credit score of at least 700, and at least 6 months of cash reserves.

What to consider when making a down payment on a house

The down payment you end up making may not have anything to do with the average down payment on a house. Other factors that influence how much you put down include:

• The amount you have in savings
• The price of the home
• The minimum down payment for your loan type
• Your total debts
• The condition of your home and how much you’ll need to spend on repairs
• Whether or not you want to pay for mortgage insurance
• Your lender’s down payment requirements
• Whether you want an existing or newly constructed home
• The current state of the housing market
• How close you are to retirement

When it comes to gathering the money for a down payment, NAR data found that:

• 69% of first-time home buyers used their own personal savings
• 25% used gifts or loans from family and friends
• 21% used financial assets, like investment accounts
• 7% used inheritances

If you can’t afford your down payment, you may qualify for down payment assistance. Down payment assistance programs are offered by many states, local governments, and non-profit organizations to help low- and moderate-income first-time home buyers cover the upfront costs. You can use this tool to explore down payment assistance programs that are offered in your area.

How to save and pay for a down payment

It can take time to save up enough money to make a down payment on a home. Here are some ways prospective home buyers cover the upfront costs.

Common sources for down payment funds

Mortgage lenders permit down payments from the following sources:

1. Personal savings: Checking accounts, savings accounts, or certificates of deposit.
2. Gift funds: Documented gift money from family members, as long as a signed gift letter confirms the funds do not require repayment.
3. Financial assets: Liquidated brokerage accounts, stocks, or 401(k) / IRA retirement withdrawals (subject to IRS rules and potential tax penalties).
4. Inheritances: Funds received through verified estate inheritances.

Down payment assistance programs

If saving for a down payment is holding you back from homeownership, down payment assistance (DPA) programs can bridge the gap. Offered by state housing finance agencies (HFAs), county municipalities, and local non-profits, DPA options include:

• Grants: Upfront funds that do not require repayment.
• Forgivable second loans: Zero-interest loans that are completely forgiven if you occupy the property as your primary residence for a specified timeframe (typically 3 – 5 years).
• Deferred-payment secondary loans: Low- or zero-interest loans that are repaid when you eventually sell or refinance the home.

When is the down payment due?

Your down payment is paid in 2 stages during the purchase process:

1. Earnest money deposit (1% – 2% of purchase price): Paid after the seller accepts your purchase contract. This deposit is held in a secure escrow account and counts directly toward your required down payment at closing.
2. Remaining down payment balance: Paid via certified cashier’s check or secure electronic wire transfer on closing day, right before signing final loan documents.

Do you need 20% for a down payment on a house?

No. The myth of the 20% down payment requirement comes from the PMI requirement on conventional loans. PMI is a type of mortgage insurance that lenders require for their protection if a borrower ends up defaulting on their home loan.

While you’ll need to pay PMI if you have a lower down payment than 20%, you can request to cancel your PMI once you reach 20% equity.

Pros of a 20% down payment

Avoiding PMI isn’t the only benefit of putting 20% down on your loan. Other advantages include:

• A lower interest rate
• A smaller loan amount
• Lower monthly mortgage payments
• Less interest paid over the life of the loan

You can save thousands of dollars over time by reducing the amount of money you borrow and the interest you pay on the mortgage loan.

Cons of a 20% down payment

Making a 20% down payment on a house can also come with a few downsides, which may include:

• Needing more time to save for a down payment
• Having less money to pay for potential home repairs, new furniture, and other necessities
• Depleting your savings or emergency fund

Consider your loan’s requirements along with your financial situation and individual preferences when determining how much you need for a house down payment.

FAQ

Here are the answers to some frequently asked questions about down payments.

What’s a good size down payment for a house?

A good down payment balances getting an affordable monthly payment with keeping enough liquid savings for emergency reserves. These days, the average down payment hovers around 15% of the purchase price.

Can you avoid PMI without making a 20% down payment?

Yes. You can avoid monthly PMI on a conventional loan by selecting lender-paid mortgage insurance (LPMI), where the lender pays the PMI in exchange for a slightly higher interest rate.

Can you get a loan for a down payment?

Lenders generally prohibit taking out an unsecured personal loan to fund a mortgage down payment. However, formal government-sponsored DPA second loans or 401(k) loans are typically allowed.

The bottom line

These days, the typical down payment for first-time home buyers in the U.S. is about 9% of the purchase price. However, you can get a conventional loan for as little as 3% down and an FHA loan for at least 3.5%. Buying a home with as little as zero down is possible if you’re eligible for a VA or USDA loan.

The down payment that’s right for you will depend on your individual circumstances and needs. When you’re ready to begin the home-buying process, start your application online with Rocket Mortgage. We’ll help you understand the true cost of your mortgage and identify your most suitable loan options.

¹ Rocket Mortgage is a VA approved lender, not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency.

² The 3% down payment option is only available on certain conventional loan products and is not available in all states. Additional terms and conditions may apply.

³ To qualify for this offer, you must meet all standard FHA eligibility requirements. In addition, your total mortgage payment, including taxes and insurance, cannot exceed 38% of your income, your debt-to-income (DTI) ratio cannot exceed 45%, and you must have 12 months of verifiable housing history immediately prior to your application, no late payments 30 days or greater in the last 12-months, and no derogatory marks on your credit report. Not available on jumbo loans. Asset statements may be needed, no more than 1 day of non-sufficient fund fees are allowed in the most recent 2 months prior to application. Additional restrictions/conditions may apply.