Work out how much cash you need for a down payment, how big your loan will be, and how long it will take to save the amount at your current pace.
How much should you put down on a house?
There is no single right answer. The minimum depends on the loan type, while the best amount depends on your savings and goals.
| Loan type | Typical minimum down payment |
|---|---|
| Conventional loan | 3% to 5% (20% to avoid PMI) |
| FHA loan | 3.5% with qualifying credit |
| VA loan (eligible veterans) | Often 0% |
| USDA loan (eligible rural areas) | Often 0% |
Program rules change, so confirm current requirements with a lender.
How the calculator works
Down payment = Home price × down payment %
Loan amount = Home price − down payment
Months to save = (down payment − already saved) ÷ monthly savings
The target date assumes you save the same amount every month and do not count interest earned on your savings, so the real date may come a little sooner.
Worked example
For a $400,000 home:
- At 20% down you need $80,000 and borrow $320,000.
- At 10% down you need $40,000 and borrow $360,000, usually with PMI.
With $15,000 already saved and $1,000 a month going into savings, reaching $80,000 takes 65 months, about 5 years and 5 months. Reaching 10% down ($40,000) takes 25 months.
20% down versus less
Benefits of 20%: no PMI, a smaller loan and payment, and more equity from day one. Benefits of less: you can buy sooner and keep more cash for emergencies, moving costs and repairs. If home prices or rents are rising quickly where you live, waiting years to reach 20% can cost more than PMI would.
Don't forget the other upfront costs
Your down payment is not the only cash you need. Plan for closing costs (often 2% to 5% of the loan), moving costs and an emergency fund that stays untouched after you buy.
Frequently asked questions
Can I use gift money for a down payment?
Many loan programs allow gifts from family, usually with a signed gift letter. Ask your lender how they need it documented.
Where should I keep my down payment savings?
A high-yield savings account is a common choice: the money stays safe and available while earning some interest. Avoid the stock market for money you need within a few years.
Does a bigger down payment get a better rate?
Often, yes. Lenders see less risk when you have more equity, which can mean a slightly lower rate or lower PMI cost.
Related tools
Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.