Down Payment Calculator (Home Loan & PMI)
Calculate minimum down payment requirements across Conventional, FHA, VA, and USDA home loans, required upfront closing cash, and monthly PMI costs.
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Frequently Asked Questions
What is the minimum down payment required to buy a house in the US?
Contrary to popular belief, you do not need 20% down. First-time homebuyers can qualify for conventional loans with as little as 3% down. FHA loans require 3.5% down with credit scores down to 580. VA loans (for active military and veterans) and USDA rural loans require 0% down.
What is Private Mortgage Insurance (PMI)?
PMI protects the lender if you default on your mortgage. Conventional lenders require PMI whenever your down payment is less than 20% (Loan-to-Value greater than 80%). PMI typically costs between 0.5% and 1.5% of the original loan balance annually ($100 to $250/month).
How can you remove PMI from a conventional mortgage?
Under the federal Homeowners Protection Act, you can request PMI cancellation once your mortgage principal balance reaches 80% of original home value, and lenders must automatically terminate PMI once the loan balance reaches 78%.
What upfront cash is required besides the down payment?
Buyers must bring closing costs (appraisal, title insurance, loan origination, recording fees, escrow reserves), which typically total 2% to 5% of the purchase price on top of the down payment.