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- You may need between 3% and 20% for a down payment, depending on which type of mortgage you get.
- We've calculated the dollar amount you'll need for 3%, 10%, and 20% down in America's 20 biggest cities.
- A 20% down payment ranges from $44,765 in Indianapolis to $329,931 in San Francisco.
Buying a home is probably one of the biggest purchases you'll ever make, and while most people use a loan to buy a home, you'll still likely need to bring some cash of your own to the table in the form of a down payment.
Depending on your lender and which type of mortgage you get, you could need up to 20% for a down payment. To get an idea of how this will look for many Americans, we've calculated how much you'd need for a 3%, 10%, or 20% down payment in the 20 largest US cities. We've based these numbers on each city's typical home value in July 2022, according to Zillow.
How much do you need for a down payment on a house?
So, how much do you need for a down payment on a house? It depends on which type of mortgage you get.
If you apply for a conforming mortgage — which is what you probably think of as a "regular mortgage" — you may be able to put down as little as 3%. On a $200,000 home, this means you'll need $6,000 for your down payment. Some lenders may require larger down payment amounts, often 5% or 10%.
For a jumbo mortgage, which is a loan for a larger amount, many lenders require at least 20%.
You may qualify for a government-backed mortgage, which is loan insured by a federal government agency. These loans are less risky for lenders, so they require lower down payments. An FHA mortgage needs a 3.5% down payment, while a VA mortgage and USDA mortgage don't call for any down payment.
How much you'll need for a down payment in America's 20 largest cities
| City | Typical home value | 20% down payment | 10% down payment | 3% down payment |
| New York City, NY | $767,693 | $153,539 | $76,769 | $23,031 |
| Los Angeles, LA | $1,007,124 | $201,425 | $100,712 | $30,214 |
| Chicago, IL | $318,690 | $63,738 | $31,869 | $9,561 |
| Houston, TX | $266,964 | $53,393 | $26,696 | $8,009 |
| Phoenix, AZ | $433,660 | $86,732 | $43,366 | $13,010 |
| Philadelphia, PA | $233,663 | $46,733 | $23,366 | $7,010 |
| San Antonio, TX | $298,626 | $59,725 | $29,863 | $8,959 |
| San Diego, CA | $1,007,875 | $201,575 | $100,788 | $30,236 |
| Dallas, TX | $329,378 | $65,876 | $32,938 | $9,881 |
| Austin, TX | $686,669 | $137,334 | $68,667 | $20,600 |
| San Jose, CA | $1,514,900 | $302,980 | $151,490 | $45,447 |
| Fort Worth, TX | $328,090 | $65,618 | $32,809 | $9,843 |
| Jacksonville, FL | $302,678 | $60,536 | $30,268 | $9,080 |
| Columbus, OH | $241,472 | $48,294 | $24,147 | $7,244 |
| Charlotte, NC | $396,919 | $79,384 | $39,692 | $11,908 |
| Indianapolis, IN | $223,826 | $44,765 | $22,383 | $6,715 |
| San Francisco, CA | $1,649,655 | $329,931 | $164,966 | $49,490 |
| Seattle, WA | $984,905 | $196,981 | $98,491 | $29,547 |
| Denver, CO | $652,170 | $130,434 | $65,217 | $19,565 |
| Washington DC | $717,083 | $143,417 | $71,708 | $21,512 |
Benefits of making a larger down payment
There are perks to having more than the minimum down payment. Lenders typically reward higher down payments with lower interest rates. Locking in a lower rate could save you thousands of dollars over the life of your loan.
With conventional mortgages, or mortgages that aren't backed by a government agency, those who make 20% down payments aren't required to pay for private mortgage insurance (PMI). PMI typically costs between 0.2% to 2% of your mortgage principal, or $200 to $2,000 for every $100,000 you borrow. PMI can usually be canceled once you reach 20% equity in your home.
Not everyone can afford to make such a large down payment, and even though there are benefits to doing so, it's not always advisable. You want to make sure you have enough money left over after your purchase to afford the responsibilities of homeownership, such as making repairs and keeping your home maintained.
As you think about how much to put down on your home, be sure to consider all of your financial responsibilities and goals, and how much you can realistically afford to put toward your home purchase.
Via PakApNews