How Much Down Payment Do You Need to Buy a House in 2026? (US Guide)
You don't need 20% down to buy a house in 2026. FHA loans require 3.5%, conventional requires as little as 3%. Here is the complete guide to down payment options, PMI costs, and the break-even analysis.
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# How Much Down Payment Do You Need in 2026?
The 20% down payment "rule" is a myth. You need 20% to avoid PMI on a conventional loan -- but you can buy a home with as little as 0% down if you qualify for a VA or USDA loan, or 3.5% with FHA.
Use our Down Payment Calculator to compare 5%, 10%, 15%, and 20% down side by side with exact PMI costs and monthly payments.
Minimum Down Payment by Loan Type (2026)
| Loan Type | Minimum Down | Credit Score | PMI/MIP Required | Best For |
|---|---|---|---|---|
| VA Loan | 0% | 580+ (varies) | No PMI ever | Veterans, active military |
| USDA Loan | 0% | 640+ | Annual fee (not PMI) | Rural/suburban buyers |
| FHA Loan | 3.5% | 580+ | Yes (lifetime if <10% down) | Low credit buyers |
| FHA Loan | 10% | 500-579 | Yes (11 years) | Very low credit |
| Conventional | 3% | 620+ | Yes (until 80% LTV) | First-time buyers |
| Conventional | 5-15% | 640+ | Yes (until 80% LTV) | Most buyers |
| Conventional | 20%+ | 620+ | No PMI | Best rate/payment |
Down Payment vs Monthly Payment (Real Numbers)
$400,000 home, 7% rate, 30 years:
| Down Payment | Amount | Loan | Monthly P&I | Monthly PMI | Total Monthly |
|---|---|---|---|---|---|
| 3% ($12K) | $12,000 | $388,000 | $2,582 | $259 | $2,841 |
| 5% ($20K) | $20,000 | $380,000 | $2,529 | $253 | $2,782 |
| 10% ($40K) | $40,000 | $360,000 | $2,395 | $240 | $2,635 |
| 15% ($60K) | $60,000 | $340,000 | $2,263 | $114 | $2,377 |
| 20% ($80K) | $80,000 | $320,000 | $2,129 | $0 | $2,129 |
Use our Mortgage Calculator to add property taxes and insurance for the complete PITI picture.
The PMI Math: Is 20% Down Worth It?
PMI typically costs 0.5-1.5% of the loan annually, cancels at 80% LTV (you must request it; lenders must auto-cancel at 78%).
On $400K home, 10% vs 20% down:
- 10% down monthly PMI cost: ~$240/month
- Time until PMI cancels (at 7%, 30 years): ~10 years
- Total PMI paid: ~$28,800
- Extra down payment for 20%: $40,000
The math: Pay $40,000 extra now to save $28,800 in PMI over 10 years? Break-even is roughly 16 years. If that $40,000 was invested at 7% for 10 years, it would grow to $78,700 -- significantly outperforming the PMI savings.
First-Time Buyer Programs: Free Down Payment Help
Every state has a Housing Finance Agency (HFA) offering assistance:
- Down payment grants: $5,000-$25,000 (often forgivable after 5 years)
- Forgivable second mortgages: For closing costs
- Below-market rate first mortgages
See your state's HFA website. Also check:
- National Homebuyers Fund: Up to 5% down payment assistance
- USDA Section 502: 100% financing for rural areas (no down payment)
- Good Neighbor Next Door: 50% off home price for teachers, police, firefighters
Use our Closing Cost Calculator to understand total cash needed (down payment + closing costs) before applying.
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