What is the minimum down payment for a house?

It depends on the loan. Conventional loans start at 3% for qualifying first-time buyers. FHA loans require 3.5% with a credit score of 580 or above. VA and USDA loans can allow 0% down for eligible borrowers.

What is PMI and when does it go away?

Private mortgage insurance protects the lender when you put down less than 20% on a conventional loan. On most conventional loans it can be removed once you reach 20% equity, and it drops off automatically at 22%.

Is it better to make a bigger down payment or keep savings?

It depends on your situation. A bigger down payment lowers your monthly cost and may remove PMI. Keeping cash gives you a cushion for closing costs, repairs, and emergencies. Many buyers land somewhere between the two.

Do I need 20% down to buy a house?

No. Twenty percent lets you skip private mortgage insurance, but most buyers put down less than that. The median down payment for first-time buyers has historically been well under 10%.

Can my down payment be a gift?

Often, yes. Most loan programs allow gift funds from family members, with documentation showing the money is a gift and not a loan. Rules vary by program.

Does the down payment include closing costs?

No. Closing costs are separate and typically add 2% to 5% of the purchase price. Plan for both.

DOWN PAYMENT CALCULATOR

How much do you actually need to put down?

The old "20% down" rule is more myth than rule. Plenty of buyers close with 3% to 5% down, and some federal programs allow less. What matters is understanding the trade: a smaller down payment means a bigger loan, a higher monthly payment, and (below 20%) mortgage insurance. Enter a home price and a percentage or dollar amount, and this calculator shows you the full picture in about 20 seconds.

Down Payment Calculator | Yellow

Target home

Target home price

Not sure yet? Try the affordability calculator first.

Include estimated closing costs — typically 2–5% of the purchase price on top of your down payment.

Your savings

Saved so far

Amount you can save per month

This drives the timeline on the right — adjust it to see how the math changes.

Down payment by tier — tap one to build a timeline

Savings timeline at 20% down

$0 saved of $0 needed

Still need

Time to get there

Enter a monthly amount

See what this looks like with pre-approval

Down payment minimums shown are general industry patterns, not universal rules — exact minimums and mortgage insurance requirements vary by lender, loan program, and your individual qualification. Closing costs are estimated at 3% of home price by default (within the commonly cited 2–5% range) and can be adjusted off. This tool is for planning purposes only. For the fuller picture of what's next, see the first-time homebuyer roadmap.

How to read your result

Three numbers do most of the work here.

Down payment in dollars. The percentage sounds abstract until you see it. On a $350,000 home, 3% is $10,500 and 20% is $70,000. That gap is often the difference between buying this year and buying in four.
Loan amount. Home price minus down payment. This drives your monthly payment and your total interest over the life of the loan.
‍Mortgage insurance. Put down less than 20% on a conventional loan and you'll typically pay private mortgage insurance (PMI), usually somewhere between 0.3% and 1.5% of the loan amount per year, split into monthly payments. It drops off once you reach 20% equity. FHA loans use their own version, called MIP, with different rules.

The 20% question

Twenty percent avoids PMI and usually gets you a slightly better rate. It is not required, and waiting years to reach it while home prices and rents rise can cost more than the PMI would have. Many buyers do better putting 5% to 10% down, keeping cash in reserve for closing costs, repairs, and moving, and dropping PMI later.
There's no universally right answer. The calculator exists so you can see both paths in real dollars and decide which one fits your life.

Don't forget closing costs

Your down payment is not the only cash you'll need at closing. Closing costs (lender fees, title, appraisal, prepaid taxes and insurance) typically run 2% to 5% of the purchase price. On a $350,000 home, that's another $7,000 to $17,500. Some of that can be negotiated into seller credits, and some programs allow gifts from family, but budget for it now so it doesn't surprise you later.

A quick example

Home price: $350,000.

3% down ($10,500): Loan of $339,500. PMI likely required. Lowest cash to close.
10% down ($35,000): Loan of $315,000. PMI still required but often at a lower rate. Monthly payment drops noticeably.
20% down ($70,000): Loan of $280,000. No PMI. Lowest monthly payment, but $59,500 more cash out of pocket than the 3% option.

Which one is right depends on what else that $59,500 could do for you, and how long you plan to stay in the home.

What to do with your number

Plug the loan amount into the Mortgage Payment Calculator to see the full monthly cost with taxes, insurance, and PMI.
Not sure the price is right for your income? Back up a step with the Home Affordability Calculator.
If you qualify for a federal program, your minimum down payment may be lower than you think. Checking your rate with Yellow runs those matches automatically.

How much do you actually need to put down?

How to read your result

Frequently asked questions

Let's get you home.

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