The average down payment for a house in 2025 is 14.4% with a median down payment amount of $30,400.[1] With the median home sale price in the US sitting at $439,917, down payments are less affordable for the average American than ever. [2]
Even if you have more or less than 14.4% saved for your down payment, you'll likely be fine either way. Although more is usually better, the truth is you don't always need as much as you'd think. The down payment requirements for your situation depend on a lot of factors, including your location, credit history, and the type of mortgage you’re eligible for. Here's how to know how much of a down payment you'll need.
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What is a down payment?
A down payment on a home is a percentage of the purchase price that you pay upfront with cash. The remainder of the home’s purchase price is usually covered by a mortgage. So, if the property costs $350,000, you might pay $50,000 in cash as a down payment and get a mortgage loan for $300,000.
A down payment of at least 3% is often a requirement for getting approved for a mortgage, unless you qualify for something like a USDA or VA loan where no down payment is required. Saving for your down payment is one of the most important steps toward buying a house.
Your down payment also gives you instant equity in your home. In other words, you’ll own whatever amount of your home that you’ve covered through a down payment. This equity can be helpful, especially if you need to apply for a home equity loan in the future and want a competitive interest rate.
How much is a down payment on a house?
Down payments on a house usually range from 0% to over 20% of the home's purchase price. A small down payment is considered anything under 10%, while a large down payment is over 20%. The amount you put toward your down payment will depend on your personal financial circumstances, the type of mortgage you’re applying for, and your lender’s requirements.
Keep in mind that for conventional loans, if your down payment is less than 20%, you’ll be required to purchase private mortgage insurance (PMI). PMI protects lenders in case you default on your mortgage. PMI is usually added onto your monthly mortgage payments and typically costs around 0.5% to 2% of the borrowed amount. However, your actual rate will depend on your credit score, your local market, and the mortgage type. Avoiding the requirement to pay for PMI is a big reason to save up a bigger down payment.
Average down payment for a house in 2025
Although the average down payment for a single-family home in 2025 is 14.4% according to NAR, down payments for rental properties and second homes are much higher, at 27.4% on average. [3]
Similarly, regional variations are significant. The typical homebuyer in San Francisco puts down 26.4%, whereas buyers in Virginia Beach, Virginia, put down an average of just 3%.[2]
Down payment amounts by loan type
How much of a down payment is required can vary depending on the type of loan you’re applying for. Note that while the minimum requirement may be very low, many homebuyers still opt for a higher down payment to benefit from lower mortgage payments, fees, and ongoing insurance costs like PMI.[4]
| Loan type | Minimum down payment | Notes |
|---|---|---|
| Conventional loan | 3% | PMI (~0.5%–2%) required for down payments under 20%. |
| FHA loan | 3.5% (FICO score above 580) or 10% (FICO score between 500 and 579) | Requires mortgage insurance premiums of 0.15% to 1.75%.[5] |
| VA loan | 0% | Only available to eligible veterans and service members. |
| USDA loan | 0% | Only available in eligible rural and suburban areas. |
| Jumbo loan | 10% to 20% | Varies depending on the lender. |
| Investment/second property | 20% to 25% | Varies by lender. Higher minimums if non-owner occupied. |
Pros and cons of large vs. small down payments
Large down payment
A large down payment is often considered anything above 20%, especially if you’re applying for a conventional loan. For investment and secondary properties, 20% is usually considered the minimum required amount.
Pros
- No need for private mortgage insurance (PMI): If your down payment is above 20% for a conventional loan, you won’t be required to purchase PMI.
- Lower monthly payments: Your monthly mortgage payments will be lower, you won't have to pay PMI, and you can qualify for better interest rates.
- More competitive offer: In competitive markets, a higher down payment will help your offer stand out. Many sellers view buyers with higher down payments as more financially stable.
- Reduced risk: The higher your down payment amount, the less likely you’ll end up being underwater on your mortgage (i.e., owing more than what your home is worth).
Cons
- Delay homeownership: Saving up for a large down payment takes time, which means you’ll have to delay homeownership.
- Less cash for emergencies: By putting so much money into a down payment, you’ll have less liquid cash on hand in case of emergencies unless you've also saved a substantial emergency fund.
- Lost investment opportunities: You could use the money you saved up for a down payment for potentially higher returns elsewhere, such as in equities.
Small down payment
A small down payment is typically considered anything below 10%. However, what’s considered small will depend on the loan type. For conventional loans, a small down payment is between 3% and 10%, whereas some government-backed loans have down payments as low as 0%.
Pros
- Own your home sooner: Owning your home sooner can free you up to pursue other life goals.
- Get into the housing market faster: Focusing on saving for a large down payment means you potentially miss out on rising property values.
- More cash for other opportunities: You can use that cash to invest in opportunities with potentially higher returns or enjoy peace of mind by having a reserve of liquid cash on hand in case of emergencies.
Cons
- Higher monthly mortgage payments: Because you’ll have a larger principal to pay down—on top of PMI—you’ll have to pay higher monthly mortgage payments. Plus, lenders often charge higher interest rates for low down payments.
- Less equity in your home: This can expose you to risk, especially if housing prices fall and you end up owing more on your mortgage than what your home is worth.
- Less competitive offers: This is mostly an issue in highly competitive markets and won’t be a major factor everywhere.
- More interest paid: Over time, you’ll likely pay more in interest than if you’d put more money down since your principal will be higher.
Got your down payment saved? Talk to an agent, get prequalified
If you have enough saved for a down payment and you're ready to look into financing options, talk to a real estate agent first. An experienced realtor can help you find a lender who’s best suited for your needs, making the process of buying a house feel much smoother and less stressful. A lender can look through your finances and help you prequalify for a mortgage. Even if you're still working on saving a bigger down payment, getting some expert advice from an agent and a lender can help you stay on the right track and plan for success.
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Disclaimer: The information provided in this article is for informational purposes only. It is not intended as legal, financial, investment, or tax advice, and should not be relied upon as such. Consult a licensed financial advisor or tax professional regarding your personal financial situation before making any decisions.