Buying
How Much Down Payment Do You Need to Buy a House?
By David Golovin · September 10, 2026 · 3 min read
The minimum downpayment to buy a house depends on the loan. 20% is not required. Here is what each option actually asks for.
| Loan type | Min. downpayment | Notes |
|---|---|---|
| Conventional | 3% | Requires PMI below 20% down |
| FHA | 3.5% | 580+ credit score required for minimum |
| VA | 0% | Eligible veterans and service members only |
| USDA | 0% | Eligible rural and suburban areas only |
| Assumable mortgage | Equity gap | Cover price minus existing loan balance |
Why 20% is the magic number
Put 20% down on a conventional loan and you skip PMI entirely. Below that, lenders charge PMI until you hit 20% equity. It typically costs 0.5% to 1.5% of the loan per year. On a $350,000 loan that is $1,750 to $5,250 annually. Source: CFPB
FHA and VA options
FHA loans require 3.5% down with a 580+ credit score and carry mortgage insurance for the life of the loan. VA loans for eligible veterans and service members require no downpayment at all, though a funding fee applies. Source: HUD.gov
The assumable mortgage option
With an assumable loan, the downpayment is not a percentage. It is the gap between the purchase price and the existing loan balance. That gap can be larger or smaller than a traditional downpayment depending on how much equity the seller has. But the tradeoff is taking over a rate that may be 3 to 4 percentage points below today’s market. Roots shows the estimated downpayment gap on every assumable listing for free.
FAQ
Do you need 20% down to buy a house?
No. 20% is where PMI goes away on a conventional loan, but minimums start at 3% for conventional, 3.5% for FHA, and 0% for VA and USDA. The 20% figure is a guideline, not a rule.
What is PMI?
PMI stands for private mortgage insurance. Lenders require it on conventional loans when the downpayment is below 20%. It typically costs 0.5% to 1.5% of the loan amount per year and cancels once you reach 20% equity.
Can I buy a house with 3% down?
Yes, on a conventional loan backed by Fannie Mae or Freddie Mac. You will pay PMI until you reach 20% equity. FHA allows 3.5% with a 580+ credit score.
How much downpayment do you need for an assumable mortgage?
For an assumable mortgage, the downpayment equals the difference between the purchase price and the remaining loan balance. If a home sells for $400,000 with a $270,000 balance, you cover $130,000. This is called the equity gap.