Saving for a down payment is one of the biggest hurdles to buying a home. But you might not need as much cash as you think—especially if you’re using a government‑backed loan. Below is a quick overview of the minimum down‑payment requirements for the most common mortgage types in 2025.
**Conventional Loans (Fannie Mae/Freddie Mac)**
– Minimum down payment: 3% for a fixed‑rate conventional loan【129955882550895†L154-L160】. Some programs like HomeReady® and Home Possible® allow this low threshold, but borrowers must meet income and education requirements.
– Adjustable‑rate mortgages (ARMs) typically require at least 5% down【129955882550895†L194-L199】.
– Putting 20% down lets you avoid private mortgage insurance (PMI). If you put down less than 20%, expect to pay PMI until you reach 20% equity【129955882550895†L194-L204】.
**FHA Loans**
– 3.5% down if your credit score is 580 or higher【454882766086132†L246-L252】.
– 10% down if your credit score falls between 500 and 579【454882766086132†L246-L252】.
– FHA borrowers pay upfront and annual mortgage insurance premiums regardless of down‑payment size【454882766086132†L246-L259】.
**VA Loans**
– No down payment required. Eligible veterans, active‑duty service members and some military spouses can finance 100% of the home price【454882766086132†L246-L252】.
– A one‑time funding fee (which can be rolled into the loan) generally replaces mortgage insurance.
**USDA Loans**
– No down payment required if you buy a home in an eligible rural or suburban area and meet income limits【454882766086132†L246-L252】.
– Like VA loans, USDA loans charge an upfront and annual guarantee fee instead of monthly mortgage insurance【454882766086132†L246-L259】.
**Why Down‑Payment Size Matters**
A larger down payment reduces your loan amount and monthly payment. It can also lower your interest rate and eliminate mortgage insurance on conventional loans. However, low‑down‑payment programs make it possible to buy sooner without draining your savings.
**Next Steps**
Unsure which option is right for you? Reach out to one of our loan officers for a personalized review of your situation. We’ll help you understand how your credit score, debt‑to‑income ratio and savings affect your down payment and overall loan costs.
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