Down Payment: How Much Do You Really Need in 2025?

The 20% Myth

Many buyers believe they need 20% down. In reality, the average first-time buyer puts down just 6%. Here is what each loan type requires:

Conventional: 3-5% minimum
FHA: 3.5% minimum
VA: 0% (zero down!)
USDA: 0% (zero down!)
Jumbo: 10-20% typical

The PMI Trade-off

Putting less than 20% down means paying PMI (or MIP for FHA). On a $350K home with 5% down, PMI costs about $138/month. That is $1,656/year — but it beats waiting years to save an extra $35K for 20% down while prices rise.

Down Payment Assistance

Over 2,000 down payment assistance programs exist nationwide. Many offer grants (free money) or forgivable loans for first-time buyers.