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.
Your down payment sets your loan-to-value (LTV), PMI cost, and how competitive your offer looks to sellers.
3%
First-time buyers
Available on many conforming programs when you meet income and credit overlays. PMI is required.
5%
Most buyers
Standard minimum for repeat buyers on a primary residence. Still requires PMI below 20% equity.
10%
Stronger position
Lower PMI brackets and more seller confidence. Still not enough to eliminate PMI.
20%+
No PMI
Avoid private mortgage insurance and often unlock better overall pricing.
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.
Putting less down is not automatically worse — it depends on cash flow, reserves, and how long you will keep the loan.
Related guides to help you compare options and move toward pre-approval.
How HomeReady, HomePossible, and 97% LTV programs work.
Score tiers that affect rates and PMI pricing.
Income, DTI, reserves, and property guidelines.
Run payment scenarios with our conventional calculator.
2MG Daily
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Many first-time buyers qualify with 3% down. Repeat buyers typically need at least 5%. Putting 20% down removes the PMI requirement.
Yes. More equity often means better pricing and lower (or no) PMI, which can cut your monthly payment more than a small rate difference alone.
Yes on many primary-residence purchases. Gift letters and paper trails from the donor are required. Investment properties usually cannot use gifts.
Not always. Keeping cash for reserves, renovations, or emergency funds can outweigh the PMI savings — we model both paths before you decide.
We will price 3%, 5%, 10%, and 20% down scenarios with real PMI and rate quotes.