Do You Have To Put 20% Down on a House?

By
FACT-CHECKED
Published June 13, 2022
Young family moving to a new home without having to put 20% down on the house.

Homebuyers make a median down payment of 12%. If qualified, you can put as little as 3% down on a home with a conventional loan.

While making a 20% down payment isn’t required, you’ll get a better deal on your mortgage if you do it.

Benefits of Buying a House With 20% Down

Here are some of the biggest benefits of making a large down payment:

  • Score a better interest rate and pay less for your loan.
  • Have lower monthly mortgage payments.
  • Avoid paying for private mortgage insurance.
  • Have an offer that’s more attractive to the seller.

Drawbacks of Putting 20% Down

At the same time, there are some downsides to putting more money down:

  • Leaves less money in your savings for emergencies and to put toward other expenses or financial goals.
  • Can take longer to save for a down payment and buy a home.

Is It Worth Putting 20% Down?

Whether it’s worth making a 20% down payment will depend on your financial situation and personal goals. If you can afford it — or are willing to take the time to save up — then you’ll likely save money by getting lower interest rates and avoiding mortgage insurance. However, if you’re eager to become a homeowner ASAP, then you might choose a loan with a low down payment that lets you put less than 20% down and eat the higher cost of your loan.

Ready for more learning?

Here’s some other helpful articles

Related Articles

**itsHome, a LMB Mortgage Services, Inc. company, is not acting as a lender or broker. The information provided by you to itsHome is not an application for a mortgage loan, nor is it used to pre-qualify you with any lender. If you are contacted by a lender or broker advertising within our network, your quoted rate may be higher depending on your property location, credit score, loan-to-value ratio, debt-to-income ratio, and/or other factors. itsHome does not offer its matching services in all states. This loan may not be available for all credit types, and not all service providers in the itsHome network offer this or other products with interest-only options. The information that we provide is from companies which itsHome and its partners may receive compensation. This compensation may influence the selection, appearance, and order of appearance on this site. The information provided by itsHome does not include all financial services companies or all of their available product and service offerings. We use cookies to track data and provide you with the best possible experience. By proceeding you consent to the use of these cookies. For more information, see our Privacy Policy.

itsHome, a LMB Mortgage Services, Inc. company NMLS #167283, www.nmlsconsumeraccess.org