How Much Down Payment Do I Need to Buy a Home?
The idea that you need 20% down is one of the most common homeownership myths. In reality, many buyers in Fresno and the Central Valley purchase with far less — sometimes nothing down. Here's what to expect by loan type.
Conventional loans: as little as 3% down
Some conventional loan programs allow qualified buyers to put down just 3%. With less than 20% down you'll pay private mortgage insurance (PMI), but unlike FHA mortgage insurance, conventional PMI can be canceled once you reach 20% equity.
FHA loans: 3.5% down
FHA loans require a minimum down payment of 3.5% with a qualifying credit score (often 580+). The down payment can come entirely as a gift from an eligible donor, which makes FHA popular with first-time buyers.
VA and USDA loans: 0% down
Eligible veterans, active-duty service members, and surviving spouses can use a VA loan with no down payment. USDA loans also offer 100% financing for eligible rural and suburban properties. These are true zero-down options when you qualify.
Down payment assistance can reduce your cash needed
Even with a low-down-payment loan, coming up with 3–3.5% plus closing costs can be a hurdle. Down payment assistance programs offer grants or forgivable loans that can cover part or all of your down payment and sometimes closing costs, reducing the cash you need at the closing table.
Why 20% down still matters sometimes
Putting 20% down eliminates mortgage insurance on conventional loans and lowers your monthly payment. It can also make your offer more competitive. But it's not required — for many buyers, getting into a home sooner with less down and keeping savings in reserve is the smarter move.
Frequently Asked Questions
Do I really need 20% down to buy a house?
No. Conventional loans can require as little as 3% down, FHA loans 3.5%, and VA/USDA loans may require 0% down for eligible borrowers. 20% down avoids mortgage insurance on conventional loans but is not a requirement to buy.
Can my down payment be a gift?
Yes, on many programs. FHA loans allow the entire down payment to come from a gift by an eligible donor such as a family member. Conventional loans also allow gift funds with proper documentation.
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