Down Payment Calculator — Minimums, PMI Tiers & LTV Analysis

Minimum down payment depends entirely on loan program: Conventional loans for first-time home buyers require as little as 3% down (5% for repeat buyers). FHA loans insured by the Federal Housing Administration require 3.5% down for credit scores 580+. VA loans (for eligible veterans and active service members) and USDA loans (for designated rural properties) require 0% down. Jumbo loans typically require 10% to 20% down.

Putting 20% down completely eliminates Private Mortgage Insurance (PMI), saving between $150 and $450 per month on an average $400,000 home. Additionally, borrowing less principal reduces total monthly interest charges, shortens amortization, and typically secures a 0.25% to 0.50% lower interest rate APR from lenders.

Conventional PMI automatically cancels by federal law once your principal balance reaches 78% of original property value (or you can request cancellation at 80% equity). By contrast, FHA Mortgage Insurance Premiums (MIP) for down payments under 10% NEVER cancel—it remains for the entire 30-year life of the loan unless you refinance into a conventional mortgage.

Closing costs typically average between 2% and 5% of the total loan purchase price. On a $400,000 home, expect $8,000 to $20,000 in closing costs covering lender origination fees, appraisal, title insurance, attorney fees, municipal transfer taxes, and escrow reserves for property taxes and homeowners insurance.

Yes. Most conventional and FHA lenders allow down payment gift funds from immediate family members. However, lenders strictly require a signed Gift Letter certifying that the funds are a true gift with no expectation of repayment, along with 30 to 60 days of bank statement paper trails to satisfy anti-money laundering (AML) underwriting standards.