Real Estate
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Dec 8, 2025
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5 دقيقة قراءة
Down Payment Math: How Much Do You Actually Need
20% is the textbook number to avoid PMI. But FHA, VA and USDA loans accept 0-3.5% down — at the cost of mortgage insurance.
Conventional loan: 20% down avoids PMI. Below 20%, expect 0.5-1.5% of the loan balance per year in PMI (drops off at 78% loan-to-value). FHA loan: 3.5% down minimum with mortgage insurance for the loan life (not just until 80% LTV). VA loan: 0% down for eligible veterans, no PMI. USDA loan: 0% down for rural areas. First-time buyer programs: many state programs offer down payment assistance grants of $5K-$20K. A larger down payment lowers the monthly payment, reduces total interest, and improves your debt-to-income ratio for the loan approval. Run scenarios in our Mortgage Calculator.