Down Payment Guide

How Much Down Payment Is Required for a Conventional Loan?

First-time buyers can often put as little as 3% down on a conventional loan. Repeat buyers usually need 5% or more — and 20% down lets you skip PMI entirely. Here is how the math works.

Get Pre-Approved Conventional Overview

Conventional Down Payment Options

Your down payment sets your loan-to-value (LTV), PMI cost, and how competitive your offer looks to sellers.

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How Lenders Treat Your Cash

Down payment funds must be sourced and seasoned. Bank statements, gift letters, and retirement withdrawals each have documentation rules. We map your cash sources before you write an offer.

Second homes and investment properties need larger down payments — often 10% and 15–25% respectively — so occupancy matters as much as the percentage.

What Counts Toward Down Payment

  • Checking and savings balances with a clear paper trail
  • Gift funds from eligible donors on primary residences
  • Proceeds from selling another property
  • Retirement account withdrawals or loans (with tax caveats)
  • Earnest money already deposited toward the purchase

PMI vs. Larger Down Payment

Putting less down is not automatically worse — it depends on cash flow, reserves, and how long you will keep the loan.

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Learn more → ))}

Keep Exploring

Related guides to help you compare options and move toward pre-approval.

Can I Buy With 3% Down?

How HomeReady, HomePossible, and 97% LTV programs work.

What Credit Score Is Needed?

Score tiers that affect rates and PMI pricing.

Who Qualifies for a Conventional Mortgage?

Income, DTI, reserves, and property guidelines.

Conventional Loans Overview

Run payment scenarios with our conventional calculator.

2MG Daily

Related Blog Posts

Recent articles from our blog on conventional loans, credit, and homebuying.

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Frequently Asked Questions

See How Much Down Payment You Really Need

We will price 3%, 5%, 10%, and 20% down scenarios with real PMI and rate quotes.

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