How much down payment do I need for a home loan?
In 2025, the average homebuyer puts down 7%, not 20%.
Mortgage guidelines have evolved to increase accessibility while keeping risk in check.
Loan Type | Minimum Down Payment | Notes |
|---|---|---|
Conventional | 3–5% | PMI required under 20% LTV |
FHA | 3.5% | Flexible credit, government-backed |
VA | 0% | For veterans & active duty |
USDA | 0% | Rural/suburban areas only |
How to Lower Your Upfront Cost
- Use gift funds: Family contributions are allowed on most programs.
- Apply for DPA grants: Over 2,000 programs nationwide.
- Negotiate seller credits: Many sellers cover closing costs to help buyers close with less cash.
Tip: Keep some savings for emergencies—emptying accounts for down payment can weaken loan approval.
Even if you have been turned down by another lender, LENDERLINE has a loan program for you.
Call LENDERLINE at 1-888-661-7888 or complete this form to schedule a FREE mortgage consultation.