Down Payment Calculator

The standard recommendation is 20% to avoid PMI. However, many loan programs allow 3-5% down. FHA loans require 3.5% with a 580+ credit score. A larger down payment means lower monthly payments and less interest paid.

Private Mortgage Insurance (PMI) is required when your down payment is less than 20%. It costs 0.5-1.5% of the loan annually. Avoid it by putting 20% down, getting a piggyback loan, or requesting removal once you reach 20% equity.

Conventional loans require a minimum of 3% down for first-time homebuyers and 5% for others. FHA loans require 3.5% with a 580+ credit score or 10% with a 500-579 score. VA and USDA loans may require no down payment.

Yes, larger down payments often qualify you for better interest rates. A 20% down payment vs 10% can reduce your rate by 0.25-0.5%. Over a 30-year loan this saves thousands. But keeping emergency funds matters too.

Yes, most loan programs allow gift funds for down payments. Conventional loans require a gift letter. FHA allows 100% of the down payment to be gifted. The gift giver cannot expect repayment, and you may need to document the transfer.

Budget for closing costs (2-5% of loan), moving expenses, immediate repairs, furniture, and 3-6 months of emergency fund. Many buyers are house-poor because they forget these costs beyond the down payment.