How much down payment do you need to buy a house?

Most buyers need 3% to 3.5% down, not 20%. Conventional loans start as low as 3% and FHA at 3.5%. VA and USDA offer zero down for eligible borrowers. Down payment assistance programs can cover 3.5% to 5% of the purchase price.

Do you have to be a first-time buyer to get down payment assistance?

No. Down payment assistance programs generally allow first-time buyers but do not require it. Buyers who have owned a home before are still eligible.

What credit score do you need to buy a house?

FHA loans work with average credit. Down payment assistance programs generally start around a 640 score, and one structure reaches down to 600.

Is there an income limit for down payment assistance?

Grant programs are generally capped by area median income for the county where you are buying. Repayable second mortgage assistance options often have no income limit at all.

First-Time Home Buyer Programs

For Home Buyers

You Probably Need Less Down Than You Think

Most people who could afford a monthly payment are not buying because of one number they believe they need: 20% down. That is not a rule. It is the threshold where conventional loans stop charging mortgage insurance, and nothing more.

The real floor is 3% to 3.5% for most buyers, zero for veterans and for eligible rural and suburban areas, and assistance programs can cover most or all of what is left.

ConventionalAs low as 3% down

FHA3.5% down

VA and USDAZero down

Assistance3.5% to 5% covered

Dan Frio of The Rate Update: VantageScore 4.0 now accepted for eligible Fannie Mae and Freddie Mac loans; check your free credit scores before you apply

Step 1 for first-time buyers

Know Your Credit Score Before You Buy

Your score drives your rate, your mortgage insurance and which programs you qualify for. Lenders can now use VantageScore 4.0 or Classic FICO on eligible Fannie Mae and Freddie Mac loans, so check where you stand before you apply. It's free and won't lower your score.

Check My FREE Credit Scores

Free guides: credit score needed to buy a house · how to budget for your first home

Your options, plainly

Which one fits depends on your credit, your savings, where you are buying and whether you have served.

🔑FHA Loans3.5% down with flexible credit requirements. The workhorse for buyers with average credit or limited savings.🏡Conventional LoansAs little as 3% down for qualified buyers. Mortgage insurance drops off automatically once you reach 20% equity.🎖️VA LoansZero down and no monthly mortgage insurance for eligible veterans and service members. The strongest product in the market if you qualify.🌾USDA LoansZero down in eligible areas, which cover more ground outside Chicago than most buyers expect.🎁Down Payment Assistance3.5% to 5% toward your down payment, including grants you never repay. You do not have to be a first-time buyer.🔑Buy Before You SellAlready own a home? Unlock its equity to make an offer with no home sale contingency.

Four things worth doing in order

1Find out what you actually qualify forBefore you look at houses. A pre-qualification tells you the real number, and it is what makes your offer credible to a seller.

2Understand the full cost, not just the paymentDown payment, closing costs, reserves and the monthly payment are four different numbers. Knowing all four prevents the surprise at closing.

3Shop the loan, not just the houseOne application here goes to 30+ lenders. You see the range, not one lender’s number.

4Read the Loan Estimate before you signThis is the document that tells you what the loan actually costs. Most buyers skim it.

What buyers get told that is not true

“I need 20% down.”

You need 3% to 3.5% on most loans, and zero on VA and USDA. Twenty percent avoids mortgage insurance, which is a monthly cost, not an entry requirement.

“I need perfect credit.”

FHA works with average credit. Assistance programs generally start around 640 and one reaches 600.

“Assistance is only for first-time buyers.”

Every one of these programs allows first-time buyers and none require it. If you owned before, you are still eligible.

“I make too much for assistance.”

Grants have income limits tied to your county. The repayable second mortgage options often have no income limit at all.

Read these before you make an offer.

How much down payment do you actually need · Can you buy with no money down · Why did my Loan Estimate change · Are my closing costs too high

Start with a number, not a house. Tell me your rough credit score, your income and where you are looking, and I will tell you what you would actually need at closing and which programs you qualify for. One application, one credit pull, 30+ lenders compared. Get pre-qualified, or if you already have a quote from another lender, send it over for a free LE Review.

Program details are general, vary by program, loan type, county and property, and are subject to change without notice. This is not a commitment to lend and not all applicants will qualify.

Get a Quick Quote

First Name *

Last Name *

Email *

Phone Number *

Loan Amount *

Property Value *

Loan Type *

Credit Score *

By providing your phone number and/or email and clicking "Submit" you agree to our Terms of Service and Privacy Policy and consent to receive marketing communications from TRU with Dan Frio via text, call, or email, including automated messages. To opt out, reply 'STOP' to any text. Message and data rates may apply.

THE TRU TEST · FREE

Already have a mortgage offer? Put it to the TRU Test.

30+ wholesale lenders compete on your rate and the lender fees on page 2, Section A of your Loan Estimate. We win, or they win. Either way, you win.

Put My Offer to the TRU Test →

Which Home Buyer Program Fits You? Free Program Matcher

Three steps: tell me a little about you, see which low-down-payment programs you match (FHA, 3% conventional, VA, USDA and down payment assistance), then see your price range and cash needed. No credit pull.

1About you

Rough numbers are fine.

Credit score range

Yearly household income (before taxes)

Savings for down payment and closing

Military service

Owned a home in the last 3 years?

Where are you buying?

2Your matching programs

Ranked by how little cash you need to bring.

3Your price range and cash needed

Uses a common 43% debt-to-income guideline. Some programs allow more.

Monthly debt payments (car, cards, student loans)

Monthly taxes, insurance and HOA (estimate)

Interest rate to assume (%; ask me for today's)

Estimates only, not a loan approval or commitment to lend. Program rules, mortgage insurance and assistance availability vary by lender, location and income, and assistance programs can change or run out of funds. Dan Frio | NMLS #246527 | PBT Bancorp | NMLS #257781.