When buying a home in the United States, one of the biggest upfront costs is the down payment. A down payment represents the portion of the home’s purchase price that buyers pay upfront before taking out a mortgage loan.
The size of the down payment affects several aspects of homeownership, including monthly mortgage payments, interest rates, and loan approval conditions.
In 2026, the average down payment for a home in the United States ranges between 10% and 20% of the purchase price, depending on the type of loan and the buyer’s financial situation.
Average Down Payment by Loan Type
Different mortgage programs require different down payments.
| Loan Type | Typical Down Payment |
|---|---|
| Conventional loan | 10% – 20% |
| FHA loan | 3.5% |
| VA loan | 0% |
| USDA loan | 0% |
Many first-time homebuyers use FHA or government-backed loans that allow smaller down payments.
Example Down Payment Costs
| Home Price | 10% Down Payment | 20% Down Payment |
|---|---|---|
| $250,000 | $25,000 | $50,000 |
| $350,000 | $35,000 | $70,000 |
| $500,000 | $50,000 | $100,000 |
Saving for a down payment is often the biggest obstacle for first-time homebuyers.
Why Down Payments Matter
A larger down payment provides several financial advantages.
Lower monthly payments
Borrowing less money reduces mortgage payments.
Lower interest costs
Lenders may offer better interest rates with larger down payments.
Avoiding private mortgage insurance (PMI)
Many lenders require PMI when the down payment is below 20%.
Down Payment vs Other Home Buying Costs
Buying a home also includes other upfront costs.
| Expense | Typical Cost |
|---|---|
| Down payment | $25,000 – $100,000 |
| Closing costs | $5,000 – $15,000 |
| Moving expenses | $1,000 – $3,000 |
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