Down Payment Calculator

The traditional recommendation is 20%, which avoids PMI and gives you solid equity from day one. However, many loan programs allow much less: FHA loans require as little as 3.5%, conventional loans can go as low as 3%, and VA/USDA loans offer 0% down for eligible borrowers. A larger down payment lowers your monthly payment and total interest, but depleting all your savings can be risky. Aim for 20% if possible, but don't delay homeownership indefinitely just to hit that number.

Minimum down payments vary by loan type: Conventional loans require 3%–5%, FHA loans require 3.5% (with a credit score of 580+), VA loans and USDA loans offer 0% down for qualifying borrowers. Keep in mind that lower down payments mean higher monthly payments, PMI costs, and more total interest over the life of the loan.

It depends on your savings rate and target. For a $350,000 home with a 20% down payment ($70,000), saving $1,000/month would take about 5 years and 10 months. To speed it up, consider high-yield savings accounts, cutting discretionary spending, or down payment assistance programs offered by many states and municipalities. Some employers also offer homebuyer assistance benefits.

Yes, most loan programs allow gift funds for part or all of the down payment. The gift must come from an acceptable source — typically a family member, domestic partner, or approved nonprofit. You will need a gift letter stating the money is a gift and not a loan. FHA, VA, and conventional loans all allow gift funds, though specific documentation requirements vary by lender.