How Big of a Down Payment Do I Need?

What is a Down Payment?

Usually when you purchase a house you have to pay a certain percentage of the total price of the house. This is known as a down payment. However, there are some loan programs that don’t require you pay any money upfront at all. Make sure to ask us how.

How Big of a Down Payment Do I Need?

The exact requirements vary from loan program to loan program, and can depend on a variety of factors. I help analyze all client options and assist in determining the ideal loan, including your interest rate and upfront cost. A larger down payment will usually result in a lower interest rate, which could save you money in the long run. Paying more upfront helps you avoid paying for mortgage insurance as well, since the lender will have more confidence in your ability to pay off your loan. That being said, a larger down payment is not always the best option for every client.


Here are a few different common loan programs and the minimum down payment requirement for each one. Keep in mind that not everyone can qualify at the minimum down payment.


Loan ProgramMinimum Down Payment
Conventional5% (3% if no property owned in the last 3 years)


These aren’t all necessarily available from every lender, but the advantage of Modern Home Lending being a broker is that we can shop between all the possible lenders and banks. Therefore, we have an advantage when it comes to finding the deal that makes the most sense for our clients.