Savings Calculator

Down Payment Calculator

Find out how much you need to save for a down payment and when you'll reach your goal.

Your Home & Savings

Enter your home buying goals

Home Purchase

0 is valid for VA/USDA. Blank uses 20%.

Minimum 3% down

Using 0.30%/yr — typical PMI for 80.0% LTV; your credit score moves it. Confirm the real figure with your lender.

Not charged at this down payment, so it adds nothing to the results.

Your Savings

High-yield savings accounts offer 4-5% APY. Enter 0 for a plain cash account and the timeline becomes simple division.

How Much Down Payment Do You Need?

The down payment is one of the largest upfront costs when buying a home. While the traditional 20% down payment helps you avoid private mortgage insurance (PMI), many loan programs allow much lower down payments.

Down Payment Requirements by Loan Type

  • Conventional: As low as 3% for first-time buyers, 5% standard
  • FHA: 3.5% minimum with 580+ credit score
  • VA: 0% down for eligible veterans and service members
  • USDA: 0% down for rural property purchases
  • Jumbo: Typically 10-20% minimum for loans over conforming limits

Mortgage Insurance Is Not the Same on Every Loan

A 20% down payment only removes mortgage insurance on conventional and jumbo loans. FHA charges an annual MIP that a bigger down payment does not remove, USDA charges an annual guarantee fee for the life of the loan, and VA charges no monthly mortgage insurance at all (there is a one-time funding fee at closing instead). The calculator applies each program's own rate and lets you override it with your lender's quote.

Down payment minimums by loan type, and what PMI really costs

The minimum down payment depends on the loan: typically 3 percent for a conventional loan, 3.5 percent for FHA, and 0 percent for VA and USDA. Putting 20 percent down on a conventional loan avoids private mortgage insurance, but saving that much takes time, so weigh the PMI against the extra cash and months.

The formulas

Down payment = home price × down payment percent

Loan amount = home price minus down payment

Monthly mortgage insurance = loan amount × annual rate ÷ 12

Months to goal = time for current savings plus monthly deposits, growing at your savings return, to reach the down payment

Minimums and mortgage insurance by loan type

  • Conventional: 3 percent through first-time buyer programs, often 5 percent otherwise. PMI applies below 20 percent down and can be cancelled later.
  • FHA: 3.5 percent with a 580 or higher credit score. Annual mortgage insurance applies at any down payment.
  • VA: 0 percent for eligible veterans and service members. No monthly mortgage insurance, though most borrowers pay a one-time funding fee.
  • USDA: 0 percent in eligible rural areas for households under the income limits, with an annual guarantee fee for the life of the loan.
  • Investment property: conventional investor loans typically need 15 to 25 percent, with no low down payment option.

Worked example

Take a 350,000 dollar home. You have 20,000 dollars saved, add 1,500 dollars a month and earn 4.5 percent on savings. With 10 percent down on a conventional loan you need 35,000 dollars, which the calculator puts about 10 months away. The 315,000 dollar loan is at 90 percent loan-to-value, where the calculator's typical PMI rate is 0.5 percent, so PMI runs about 131 dollars a month. Wait for 20 percent down and you need 70,000 dollars, about 2.5 years away, with no PMI. FHA at 3.5 percent needs just 12,250 dollars, which you already have, but its mortgage insurance on the 337,750 dollar loan is about 155 dollars a month for the life of the loan.

The PMI tradeoff

Going from 10 to 20 percent down takes 35,000 more dollars and about 20 more months of saving. It saves 131 dollars a month of PMI, or 1,575 dollars a year, which is 4.5 percent of the extra 35,000 dollars. At a 6.5 percent rate the smaller loan also cuts principal and interest by about 221 dollars a month, which the mortgage calculator will show.

PMI on a conventional loan is temporary: you can typically ask to cancel it once the balance is scheduled to reach 80 percent of the original value. In this example that takes about 95 payments, so PMI would total roughly 12,500 dollars unless extra payments end it sooner. The real question is whether 20 months of waiting, and whatever prices do in that time, costs more than that.

How to read the result

The calculator shows your down payment, loan amount, estimated monthly mortgage insurance and the month you reach your goal. The insurance rate is prefilled from your loan type: 0.55 percent for FHA, 0.35 percent for USDA, none for VA, and conventional PMI from 0.3 to 1.1 percent depending on loan-to-value. Your credit score moves the real figure, so replace it with your lender's quote. You also need cash for closing costs, often 2 to 5 percent of the price, plus reserves.

Frequently asked questions

Do you need 20 percent down to buy a house?

No. Conventional loans allow as little as 3 percent down for qualifying buyers, FHA loans 3.5 percent, and VA and USDA loans 0 percent. Twenty percent down avoids PMI on a conventional loan, but it is not a requirement.

What is the minimum down payment for an FHA loan?

FHA requires 3.5 percent down with a credit score of 580 or higher, or 10 percent with a score from 500 to 579. FHA charges mortgage insurance at every down payment, and below 10 percent down the annual premium typically lasts for the life of the loan.

Can I use gift money for a down payment?

Usually, yes, for a home you will live in. Conventional, FHA, VA and USDA loans generally accept gifts from family with a signed gift letter and a record of the transfer. Rules on who can give vary by program, so ask your lender early.

How much down payment do you need for an investment property?

Conventional investment property loans typically need 15 to 25 percent down, and FHA, VA and USDA loans are not available for pure rentals. The exception is a 2 to 4 unit property you live in, which can qualify for owner-occupied financing such as FHA with 3.5 percent down.

Does a bigger down payment remove FHA mortgage insurance?

Not entirely. With at least 10 percent down, FHA annual mortgage insurance typically lasts 11 years; below 10 percent it lasts for the life of the loan. Many borrowers remove it later by refinancing into a conventional loan once they reach 20 percent equity.

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