Down Payment Calculator

How much down payment do you really need?

The 20% rule is a guideline, not a law. Real minimums: 0% for VA and USDA loans, 3% for conventional (first-time buyers), 3.5% for FHA. On a $400,000 home that is $0, $12,000, $14,000 or $80,000 — a difference that decides whether you buy this year or in five years.

The true cost of putting less down

• Bigger loan, bigger payment — every $10,000 not put down adds about $63 a month at 6.5%.
• PMI — conventional loans under 20% down add roughly 0.3–0.9% of the loan per year until you reach 20% equity. See the PMI calculator.
• Worse pricing — low-down loans often carry slightly higher rates.
• The offset: buying sooner starts equity and appreciation earlier, and stops rent payments. Waiting to hit 20% is not automatically the smart move.

Where down payments come from

Beyond savings: gift funds from family (allowed by all major programs with a gift letter), employer assistance, state and local down-payment assistance programs (there are thousands, many forgivable), and — carefully — retirement accounts. Borrowing against a 401(k) is possible but risky if you change jobs. Our down payment guide covers sources, seasoning rules and assistance programs in depth. Once your down payment is set, check the full monthly picture in the payment calculator and the cash needed at closing in the closing cost calculator — most buyers need the down payment plus 2–5% for closing.