Down Payment Calculator

Minimum: 3% for conventional loans (Fannie/Freddie), 3.5% for FHA, 0% for VA and USDA loans. Recommended: 20% to avoid PMI and get the best rates. Reality: most first-time buyers put down 6-12%. A larger down payment means lower monthly payment, no PMI, and less total interest paid.

No. You can buy with as little as 3% down on conventional loans. However, under 20% typically means paying PMI (0.5-1.5% of loan annually). FHA loans require only 3.5% down. The tradeoff: smaller down payment = PMI + higher monthly payment + more total interest over the loan life.

Closing costs: 2-5% of loan amount ($8,000-$20,000 on a $400k home). Moving costs. Initial repairs or furnishings. Emergency fund (you do not want to deplete savings completely for the down payment). Also budget for ongoing homeownership costs: property tax, insurance, HOA, maintenance (~1% of home value/year).

For timelines under 3 years: high-yield savings account (HYSA) or CDs — you need capital preservation. For 3-5 years: consider conservative bonds or CDs. Over 5 years: a mix of bonds and stocks may be reasonable. Never invest a near-term down payment in volatile assets — markets can drop 30-40% right when you need the money.

Yes, for most loan types. FHA allows 100% gifted down payment. Conventional allows gifts but usually requires some of your own funds for down payments over 20%. You need a gift letter stating the funds are not a loan. VA and USDA also allow gifts. The donor may need to document the source of funds.