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.