# How much down payment do I need?

Computes the down payment, its percent of the home price, the price, and the loan amount from any two of them, with the loan-to-value and whether PMI applies.

- Page: https://www.acalculator.org/finance/down-payment-calculator
- JSON spec: https://www.acalculator.org/finance/down-payment-calculator.json
- Version: 65b919e189e4

## Default answer

Example with the default inputs (Home price $400,000.00, Down payment percent 10%): A 10% down payment on a $400,000.00 home is $40,000.00, leaving a $360,000.00 loan.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| price | Home price | The price of the home. |
| percent | Down payment percent | The down payment as a percent of the price. |
| down | Down payment | The cash you pay toward the price. |
| loan | Loan amount | The price minus the down payment. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| price | Home price | The price of the home. |
| percent | Down payment percent | The down payment as a percent of the price. |
| down | Down payment | The cash you pay toward the price. |
| loan | Loan amount | The price minus the down payment. |
| ltv | Loan-to-value | The loan as a percent of the price: 100 minus the down payment percent. |
| fha | FHA minimum (3.5%) | The smallest FHA down payment for this price: 3.5% of it. |
| noPmi | Down payment for no PMI (20%) | The down payment that avoids PMI on a conventional loan: 20% of the price. |

## Method

down payment = price × percent ÷ 100; loan = price − down payment.

## Assumptions

- The down payment is cash paid toward the price; closing costs are separate.
- Minimums: 3% for many conventional loans, 3.5% for FHA with a credit score of 580 or more, and none for VA loans.
- Conventional loans usually add PMI with less than 20% down.

## Worked examples

1. price = $400,000.00, percent = 10% gives down = $40,000.00, loan = $360,000.00, ltv = 90%, fha = $14,000.00, noPmi = $80,000.00.
2. down = $30,000.00, percent = 5% gives price = $600,000.00, loan = $570,000.00.
3. price = $350,000.00, loan = $297,500.00 gives down = $52,500.00, percent = 15%.
4. loan = $289,500.00, percent = 3.5% gives price = $300,000.00, down = $10,500.00. Source: HUD: the FHA minimum is 3.5% of the price.

## FAQ

### How do I calculate a down payment?

Multiply the home price by the down payment percent. A 10% down payment on a $400,000 home is 400,000 × 0.10 = $40,000, and the loan is the rest: $360,000.

### How much down payment do I need?

It depends on the loan. Many conventional loans allow 3% down, FHA loans need 3.5% with a credit score of 580 or more, and VA loans can need none. Lenders set their own rules too, so ask yours.

### Do I need 20% down?

No, but with less than 20% down a conventional loan usually adds private mortgage insurance, which raises the monthly payment until you reach enough equity. With 20% down there is no PMI.

### How much house can I buy with the cash I have?

Type your down payment and the percent you plan to put down. $30,000 at 5% down supports a price of 30,000 ÷ 0.05 = $600,000. Keep cash for closing costs too, which Freddie Mac puts at 2% to 5% of the price.

### What is loan-to-value?

The loan as a percent of the price: 100 minus the down payment percent. A 10% down payment gives a 90% loan-to-value. Lenders use it to set PMI, FHA premiums, and some rates.

### Should I put down more or keep cash?

A bigger down payment lowers the loan, the payment, and the interest, and can remove PMI. Keeping cash leaves room for closing costs, repairs, and an emergency fund. Many buyers aim for the point where PMI ends and keep the rest.

## Sources

- Fannie Mae, 97% Loan to Value Options (3% down on a conventional loan). https://singlefamily.fanniemae.com/originating-underwriting/mortgage-products/97-loan-value-options
- U.S. Department of Housing and Urban Development, What is the minimum down payment requirement for FHA? https://answers.hud.gov/FHA/s/article/What-is-the-minimum-down-payment-requirement-for-FHA
- Consumer Financial Protection Bureau, When can I remove private mortgage insurance (PMI) from my loan? https://www.consumerfinance.gov/ask-cfpb/when-can-i-remove-private-mortgage-insurance-pmi-from-my-loan-en-202/
- Freddie Mac, What are closing costs and how much will I pay? (2% to 5% of the purchase price). https://myhome.freddiemac.com/blog/homebuying/what-are-closing-costs-and-how-much-will-i-pay