How Much Down Payment Do You Need To Buy a House?

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Down payments on a home loan can range from 0% to 20% or more, depending on the loan type, the property, and a buyer's credit and finances. There's no single number every buyer has to hit.Before deciding how much to put down, it helps to know how much house you can actually afford and to have a realistic plan for saving for a down payment already underway, since that number changes which loan options are available.The right amount to put down is ultimately a mortgage decision that balances the monthly payment, how much cash stays in reserve, and how competitive an offer needs to be in a given market.Debunking the 20% down payment mythThe 20% figure comes from an old rule of thumb and is not a specific requirement to obtain a mortgage. It originally mattered because putting down at least that much meant skipping private mortgage insurance on a conventional loan—but many buyers today put down far less and still qualify for competitive rates and terms.Landing below 20%, though, doesn't mean the down payment is the only cash a buyer needs on hand. "Buyers see X% down and assume that's what they will need," says Ashley Harris, director of homebuyer education at Neighbors Bank. "If their...

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