Calculate the exact down payment needed for any home price, compare 3%, 5%, 10%, and 20% down payment scenarios, see PMI costs, and estimate total closing costs. Know exactly how much to save before buying your first home. Free, instant, no sign-up.
Down payment, PMI, closing costs & loan comparison
The minimum down payment depends on your loan type: Conventional loans require as little as 3% (Fannie Mae HomeReady, Freddie Mac Home Possible programs) or 5% standard. FHA loans require 3.5% with a credit score of 580+ or 10% with a score of 500–579. VA loans (for active military, veterans, and surviving spouses) require 0% down with no PMI. USDA loans also require 0% down for eligible rural properties. The standard 20% down payment eliminates PMI entirely — but for a $400,000 home, that's $80,000 in cash, which is out of reach for many first-time buyers. On a $400,000 home: 3% down = $12,000; 5% = $20,000; 10% = $40,000; 20% = $80,000.
PMI (Private Mortgage Insurance) applies to conventional loans when the down payment is less than 20%. PMI typically costs 0.5%–1.5% of the loan amount annually. On a $380,000 loan at 0.8% PMI = $253/month — which vanishes automatically when the loan balance reaches 80% of the original purchase price (Homeowners Protection Act). Don't let PMI fear push you to wait years more to save 20% if home prices are rising: if a $400,000 home appreciates 5% while you save, it becomes $420,000 — your required 20% down payment grew from $80,000 to $84,000 while the home cost you $20,000 more to buy.
Federal: FHA loans (3.5% down), USDA, VA. State programs: most states offer down payment assistance grants (2%–5% of purchase price) for first-time buyers within income limits. HUD-approved housing counseling is free. Fannie Mae/Freddie Mac: HomeReady and Home Possible allow 3% down with flexible income limits and reduced PMI rates for qualifying borrowers.
Expect 2–5% of the loan amount in closing costs. On a $360,000 loan: $7,200–$18,000. Typical costs: origination fee (0.5–1%), appraisal ($500–$800), title insurance ($1,000–$2,500), escrow setup ($500–$1,000), attorney fees (in some states), prepaid interest, and property tax escrow. Seller concessions can cover closing costs — ask your agent.
Putting 20% down: no PMI, lower rate (0.25%–0.5% better), lower monthly payment, instant 20% equity. Putting 5% down: buy sooner, keep cash for investments or emergencies, opportunity to benefit from home appreciation on a bigger leveraged asset. At 6.4% mortgage rates, the math favors earlier buying in most appreciating markets — especially with 3%–5% annual appreciation.
Conventional loans allow down payments from gift funds with a gift letter (no repayment required). FHA allows 100% gift for down payment. VA and USDA allow gifts. The gift giver must document the gift with a signed letter stating no repayment is expected. The money must typically be seasoned in your account for 60 days or the gift must be documented to the lender's satisfaction.