Down Payment Calculator

Calculate down payment amounts, determine affordable home prices, or find down payment percentages. Includes closing costs, PMI calculations, and loan type requirements.

How to use: Select your calculation scenario, enter your financial information, and get detailed down payment requirements with total upfront costs breakdown.

Down Payment Calculator

Calculate Down Payment Amount

Find out how much money you need for a down payment based on home price and desired down payment percentage.

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Loan Type

Down Payment Calculation Results
$0
Required Down Payment
$0
Closing Costs
$0
Total Upfront Cash
$0
Monthly Payment (P&I)

Cost Breakdown

Item Amount Description

Understanding Down Payments and Home Buying Costs

A down payment is the upfront portion of a home purchase that you pay out of pocket. The remaining balance becomes your mortgage loan. Down payments are typically expressed as a percentage of the home's purchase price, and the amount required varies significantly based on loan type, lender requirements, and your financial profile.

Understanding down payment requirements and total upfront costs is crucial for successful home buying. Beyond the down payment, you'll need additional funds for closing costs, inspections, and other fees that can add thousands to your upfront expenses.

Down Payment Requirements by Loan Type

Loan Type Minimum Down Payment Typical Range Best For
Conventional3%3-20%Good credit, stable income
FHA3.5%3.5-10%Lower credit scores, first-time buyers
VA0%0-10%Veterans and service members
USDA0%0-5%Rural properties, income limits
Jumbo10%10-30%High-value properties

Benefits of Different Down Payment Amounts

20% Down Payment

Avoids PMI, better rates, stronger offers

Traditional benchmark for avoiding mortgage insurance

10-19% Down Payment

Good balance of accessibility and costs

PMI required but manageable monthly payments

3-9% Down Payment

Maximizes accessibility to homeownership

Lower upfront cost but higher monthly payments

Closing Costs Breakdown

Cost Category Typical Amount Who Pays Description
Loan Origination0.5-1% of loanBuyerLender processing fee
Appraisal$300-$700BuyerProperty valuation
Home Inspection$300-$600BuyerProperty condition assessment
Title Insurance0.5-1% of loanVariesOwnership protection
Attorney Fees$500-$1,500BuyerLegal representation
Recording Fees$50-$500BuyerGovernment filing fees

Private Mortgage Insurance (PMI)

When Required: Conventional loans with less than 20% down payment

Cost: Typically 0.3% to 1.9% of loan amount annually

Removal: Can be cancelled when loan balance reaches 78-80% of home value

Types: Monthly premium, upfront premium, or combination

Down Payment Typical PMI Rate Monthly PMI on $300K Loan
3%0.8-1.9%$200-$475
5%0.6-1.5%$150-$375
10%0.3-1.0%$75-$250
15%0.3-0.8%$75-$200

Down Payment Strategies

Save Systematically: Automate transfers to dedicated down payment savings account
First-Time Buyer Programs: Research local and state assistance programs
Gift Funds: Family members can gift money for down payment (with documentation)
IRA Withdrawal: First-time buyers can withdraw up to $10,000 from IRA penalty-free
401(k) Loan: Borrow from retirement plan (if allowed by employer)

Down Payment Sources

Source Pros Cons Documentation Required
Personal SavingsNo debt, full ownershipTakes time to accumulateBank statements
Gift from FamilyNo repayment requiredMay require gift letterGift letter, bank records
401(k) LoanAccess to retirement fundsReduces retirement savingsLoan documentation
Home Sale ProceedsLarge amount availableMust sell current home firstSettlement statement
Down Payment AssistanceReduces out-of-pocket costIncome/location restrictionsProgram requirements

Acceptable vs. Unacceptable Down Payment Sources

Generally Acceptable:

Personal savings, checking/savings accounts, CDs, money market accounts, investment account proceeds (with proper seasoning), gift funds from family, employer assistance programs, proceeds from sale of assets

Generally Not Acceptable:

Personal loans, credit card cash advances, borrowed funds from friends, recent large deposits without explanation, cryptocurrency (in most cases), unseasoned funds

Loan-to-Value (LTV) Ratios

LTV Calculation

LTV = Loan Amount ÷ Home Value × 100

Example: $320,000 loan ÷ $400,000 home = 80% LTV

LTV Ratio Down Payment Risk Level Interest Rate Impact
95-97%3-5%HighHigher rates + PMI
90-95%5-10%Moderate-HighStandard rates + PMI
80-90%10-20%ModerateGood rates + PMI
≤80%20%+LowBest rates, no PMI

Credit Score Impact on Down Payment

Credit Score Range Conventional Min Down FHA Min Down Interest Rate Impact
760+3%3.5%Best rates available
700-7593%3.5%Good rates
640-6995%3.5%Standard rates
580-63910%+3.5%Higher rates
500-579Not eligible10%Highest rates

Regional Down Payment Considerations

High-Cost Areas: Consider jumbo loan requirements and higher down payments
First-Time Buyer Programs: Many states and cities offer assistance programs
Rural Areas: USDA loans may allow 0% down payment
Local Market Conditions: Competitive markets may favor higher down payments

Additional Upfront Costs to Consider

Cost Type Typical Amount When Paid
Earnest Money1-3% of home priceWith offer (applied to down payment)
Home Inspection$300-$600After offer acceptance
Appraisal$300-$700During loan process
Moving Costs$800-$2,500Around closing
Immediate RepairsVariableAfter closing
Utility Deposits$100-$500Before/after closing

Down Payment Myths vs. Reality

Myth: You need 20% down to buy a home
Reality: Many loan programs allow 3-5% down, some allow 0%
Myth: PMI is permanent
Reality: PMI can be removed when you reach 20% equity
Myth: Higher down payment always means better deal
Reality: Consider opportunity cost and cash flow needs
Myth: All closing costs are paid by buyer
Reality: Many costs can be negotiated with seller

Timing Your Down Payment

Market Conditions: In competitive markets, larger down payments make offers more attractive

Interest Rate Environment: Rising rates may favor lower down payments to preserve cash

Personal Finance: Maintain emergency fund and avoid depleting all savings

Investment Opportunities: Consider if money could earn more invested elsewhere

Post-Purchase Financial Planning

Emergency Fund: Rebuild emergency fund after home purchase
Home Maintenance: Budget 1-3% of home value annually for upkeep
PMI Removal: Track equity growth and plan for PMI cancellation
Refinancing: Monitor rates for opportunities to eliminate PMI or reduce payments