How much down payment conventional loans need, 3% options vs 20% to skip PMI, and gift-fund rules. The 2 Mortgage Guys at Luminate Bank, Kokomo.
Home
Conventional Loans
Down Payment Required
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.
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.
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We will price 3%, 5%, 10%, and 20% down scenarios with real PMI and rate quotes.