How Much Do I Need for a Down Payment? Not Always 20%

Published 2026 · 3 min read

Everyone says 20% — but that's the ideal, not the requirement. Many loans accept far less, with a trade-off. Here's what each level actually means.

The standard levels

• 20%: avoids PMI and shows the strongest application. The gold standard, not the only option.
• 10%: common and workable — you'll pay PMI until you cross 20% equity.
• 3?5%: available on many first-time buyer and FHA programs, with PMI for the loan's life in some cases.

The PMI trade-off

Putting down 10% instead of 20% means paying private mortgage insurance until you reach 20% equity. That's real money each month, but it can get you into a home years earlier — a legitimate choice.

Plan the timing

Once you know the target, the real question is: how long will it take? That depends entirely on how much you save each month.

Run the numbers

Use the down payment calculator — enter the home price, your percentage and monthly saving, and it shows the target plus how long it takes to reach it.

The right percentage is the one that fits your whole financial picture, not just the monthly payment. A larger down payment protects you if prices dip and lowers your payment, but draining your savings to reach 20% can leave you house-rich and cash-poor the month the water heater fails. Many first-time buyers do well aiming for 10-20% while keeping a healthy emergency fund intact.