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How Much Down Payment Do You Need? Conventional, FHA, VA & USDA Loans
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Brady Webb
Think you need 20% down to buy a home? You may not.
Depending on the mortgage program and your qualifications, you may be able to purchase a home with 3%, 3.5%, or even 0% down.
Quick Down Payment Comparison
- Conventional: As little as 3% down
- FHA: As little as 3.5% down
- VA: As little as 0% down
- USDA: As little as 0% down
Minimum down payment and eligibility requirements vary by loan program and borrower qualifications.
Here's what you should know about each option.
Conventional Loans: As Little as 3% Down
Some conventional loan programs allow eligible buyers to purchase a primary residence with as little as 3% down.
On a $300,000 home: 3% down = $9,000
Conventional financing offers several low-down-payment options, depending on your qualifications.
FHA Loans: As Little as 3.5% Down
Qualified borrowers may be able to purchase with as little as 3.5% down using an FHA loan.
On a $300,000 home: 3.5% down = $10,500
FHA financing can offer more flexibility with credit and certain qualification requirements. The home generally must be your primary residence.
VA Loans: 0% Down
Eligible veterans, active-duty service members and certain surviving spouses may be able to purchase with no down payment using VA financing.
On a $300,000 home: 0% down = $0 down payment
VA loans also don't require monthly private mortgage insurance. Eligibility, property requirements and other VA guidelines apply.
USDA Loans: 0% Down
USDA loans may also provide 100% financing for eligible borrowers purchasing eligible properties.
On a $300,000 home: 0% down = $0 down payment
USDA loans have property location and household income requirements, but eligible areas may extend farther than many buyers realize.
Do You Need 20% Down?
No. While putting 20% down can reduce your loan amount and may eliminate private mortgage insurance on a conventional loan, 20% isn't required for many buyers.
Sometimes keeping additional money in savings for emergencies, repairs, moving expenses or other financial goals may make more sense than putting everything into the house.
Down Payment vs. Cash Needed at Closing
Your down payment isn't necessarily your total cash needed at closing.
Closing costs, property taxes, homeowners insurance and other prepaid expenses may also need to be considered.
Depending on your situation, seller concessions, gift funds and eligible down payment assistance programs may help reduce some of those out-of-pocket expenses.
Ready to See Which Option Fits You?
If you're considering buying in Cape Coral, Fort Myers, Southwest Florida, Louisville, or elsewhere in Kentucky, let's run the numbers and compare your options.
You may be surprised by how little you actually need to get started.
📞 Contact Brady Webb
🌴 American Mortgage Solutions
📍 Cape Coral, FL: (239) 766-8344
📍 Louisville, KY: (502) 327-9770
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Copyright © 2026 American Mortgage Solutions NMLS: 1364/MB73346
Licensed in: FL, KY, IN
FL-MBR1574, KY-MB73346
Copyright © 2026 American Mortgage Solutions NMLS: 1364/MB73346
Licensed in: FL, KY, IN
FL-MBR1574, KY-MB73346
American Mortgage Solutions follows all Equal Housing laws. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.
These materials are not from HUD, FHA, the USDA, or the VA. These materials were not approved by any government agency. They are independent of any government agency. We are not in any way affiliated with any organization listed or referenced within this website, including HUD/FHA/USDA/VA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners. For information directly from HUD/FHA, visit https://www.hud.gov/guidance For information directly from the VA, visit http://www.benefits.va.gov/HOMELOANS/ For information directly from the USDA, visit http://www.usda.gov/wps/portal/usda/usdahome?navid=GRANTS_LOANS