# Down payment

> A down payment is the part of the price you pay upfront in cash; the mortgage covers the rest. Minimums for VA, USDA, conventional and FHA loans.

URL: https://mortgage-math-us.com/glossary/down-payment/  
Last reviewed: 2026-10-29 · By the MortgageMath US Editorial team

## Quick answer

A **down payment** is the part of the purchase price you pay upfront; the mortgage covers the rest. Minimums run from 0% on VA and USDA loans to 3% on some conventional loans and 3.5% on FHA loans, and with less than 20% down you’ll usually pay for mortgage insurance.

## Key facts

| Fact | Value | Source | As of |
|---|---|---|---|
| Conventional, some programs | 3% | [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) | Oct 28, 2026 |
| FHA (credit score of 580 or higher) | 3.5% | [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) | Oct 28, 2026 |
| VA | 0% | [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/) | Jan 7, 2026 |
| USDA guaranteed | 0% | [USDA Rural Development](https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program) | Oct 28, 2026 |

## Minimums on a median-priced home

*Minimum down payment on a $360,000 home*

| Loan | Minimum | In dollars |
|---|---|---|
| VA | 0% | $0 |
| USDA | 0% | $0 |
| Conventional (some programs) | 3% | $10,800 |
| FHA | 3.5% | $12,600 |

Putting 20% down, $72,000 here, avoids private mortgage insurance on a conventional loan. VA and USDA loans need no down payment for eligible buyers but generally charge an upfront funding fee (VA) or guarantee fee (USDA). Every dollar you put down lowers your [loan-to-value ratio](https://mortgage-math-us.com/glossary/loan-to-value-ratio/) and your monthly payment.

## Where the money can come from

Savings and the proceeds from selling a home are the usual sources. Family money documented with a [gift letter](https://mortgage-math-us.com/glossary/gift-letter/) and [down-payment assistance](https://mortgage-math-us.com/glossary/down-payment-assistance/) can cover part or all of it, depending on the loan. Lenders check where the funds came from, so large recent deposits need a paper trail. Set aside enough for [closing costs](https://mortgage-math-us.com/glossary/closing-costs/) too; the [down payment guide](https://mortgage-math-us.com/buying/down-payment/) shows how to balance the two.

## Sources

- [US Census Bureau, American Community Survey 2024 1-year](https://data.census.gov/table/ACSDT1Y2024.B25077?g=010XX00US) — Median value of owner-occupied homes (2024 ACS 1-year)
- [U.S. Department of Veterans Affairs](https://www.va.gov/housing-assistance/home-loans/loan-types/purchase-loan/) — VA purchase loan down payment (price at or below appraised value) (Jan 7, 2026)
- [USDA Rural Development](https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program) — USDA guaranteed loan down payment (Oct 28, 2026)
- [CFPB](https://www.consumerfinance.gov/owning-a-home/prepare/figure-out-how-much-you-want-to-spend/) — Minimum down payment on some conventional loans; Minimum FHA down payment (Oct 28, 2026)
- [CFPB: Where can I get money for a down payment on a home?](https://www.consumerfinance.gov/ask-cfpb/where-can-i-get-money-for-a-down-payment-on-a-home-en-123/)

_General information, not financial advice._