What are the down payment options?
By AbeAugust 12, 2026Purchase Loans
Short Answer
Down payment options can range from no down payment for certain eligible programs to 3%, 3.5%, 5%, 10%, 20%, or more. The best amount depends on the loan type and your overall financial plan.
Full Detailed Answer
Conventional loans may offer low-down-payment choices for eligible primary-residence buyers. FHA financing may allow 3.5% down for qualified borrowers. VA and USDA programs may offer no-down-payment financing when the borrower and property meet the rules. Jumbo, investment, bank statement, ITIN, foreign national, and other portfolio programs commonly require more equity.
Funds may come from the borrower's verified accounts and, when allowed, eligible gifts, grants, approved assistance, or seller credits for permitted costs. Every source must be documented, and seller credits generally cannot replace the borrower's required minimum investment.
Putting less down preserves cash but can increase the loan amount, monthly payment, mortgage insurance, or rate. Putting more down may improve terms, but you should still retain enough money for closing costs, reserves, repairs, and emergencies.
What Abe Will Review
- Minimum required investment
- Mortgage insurance and monthly payment
- Eligible gift or assistance funds
- Cash reserves after closing
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