Down Payment

Down Payment Options & Assistance

3%, 3.5%, 5%+, plus how grants, gifts, and assistance programs can help you get the keys sooner—without draining every dollar of savings.

For buyers planning their cash-to-close Covers low-down options & 0% programs Grants, gifts & assistance in plain English

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Down payment basics

~5 min read

Designing a smart down payment plan

You don’t have to choose between “20% down or nothing.” We can blend your savings with grants, gifts, and assistance to build a plan that fits your goals and your cash flow.

① See common options like 3%, 3.5%, 5%+—and where 0% may apply.
② Understand how gifts, grants, and assistance can layer in.
③ Weigh the trade-offs between cash in the bank and cash at closing.

Plain-English • Education-focused For illustration only • Not program-specific

Smart tools to pair with your down payment plan
Use these calculators to see how different down payment amounts change your monthly payment and estimated cash to close—then we can layer strategy and local programs on top of what you find.

Run affordability numbers → Estimate monthly payment

Coaching insight

Who this guide is for

This guide is for you if you’re wondering, “Do I really need 20% down?” or you’re not sure how far your current savings can take you.

It’s especially helpful if you:

Have heard you must have 20% down and it feels out of reach.
Are working with limited savings but strong income and want to explore 3%, 3.5%, or 5% options.
Expect help from family gifts and want to know how that works.
Want to understand down payment assistance, but the rules and terms feel confusing.
Are deciding whether to put more down or keep extra cash for reserves, projects, or emergencies.

The goal: give you a clear, realistic picture of what you can do now—and what steps could open up more options in the months ahead.

Definitions

Down payment, cash to close & common minimums

Down payment in plain English

The portion of the purchase price you’re paying up front, usually from savings, gifts, or assistance.
Expressed as a percentage of the price (3%, 3.5%, 5%, 10%, 20%, etc.).
Combined with your loan amount to equal the home’s purchase price.

Cash to close vs. down payment

Down payment is one piece of what you bring to the table.
Cash to close includes down payment plus closing costs, prepaid taxes/insurance, and any program fees.
Assistance or credits may help with closing costs, not just the down payment itself.

Common starting points (subject to eligibility & change)

Many Conventional programs start as low as 3% down for qualifying buyers.
FHA often starts at 3.5% down when guidelines are met.
VA and USDA can offer 0% down for eligible borrowers and properties.
Some jumbo options may allow less than 20% down with the right profile.

Exact options depend on your credit, income, property type, location, and current program availability—but the big idea is this: there are more paths than just 20% down.

Planning trade-offs

Lower down vs. higher down: what changes

Lower down (3%–5% range)

Often the sweet spot for getting in the door sooner while keeping more cash in the bank.

Lets you become a homeowner with less upfront cash.
Payment may be higher and can include mortgage insurance (MI) on some programs.
Keeps more savings available for emergencies, projects, or reserves.

Higher down (10%–20%+ range)

More equity up front and, in some cases, the ability to avoid monthly MI.

Can lower your monthly payment and total interest over time.
May reduce or remove monthly mortgage insurance, depending on the program.
Uses more of your savings, so it’s important to keep a reasonable emergency cushion.

There’s no one “right” answer for everyone. The best plan balances your payment comfort, timeline, and cash reserves—not just a number someone once told you.

Inside the process

What we look at when we design your down payment

A good down payment plan starts with more than just “How much do you have saved?” Here’s what we walk through together:

Your monthly comfort zone – the payment range that lets you sleep at night.
Savings & reserves – what you have now and what you’d like to keep after closing.
Time horizon – how long you expect to stay in the home and your plans for future moves or upgrades.
Gift funds – whether family plans to help and how that support will be documented.
Assistance programs – any local, employer, or community programs you may qualify for.
Program rules – how Conventional, FHA, VA, USDA, and other options treat down payment, assistance, and MI.

The outcome is a clear set of choices—not just “you’re approved,” but “here’s how different down payments change the numbers.”

Compare approaches

Using your own funds vs. adding grants & assistance

Savings-only approach

Straightforward and flexible, but not always necessary to do alone.

All funds come from your own savings or investments.
Fewer moving parts and usually fewer long-term restrictions.
May take longer to save the amount you’d like, especially in rising price environments.

Savings + assistance

Blends your own funds with grants, forgivable loans, or second liens where allowed.

Can reduce your out-of-pocket cash at closing.
Often comes with income, location, or occupancy rules and sometimes repayment or recapture terms.
Works best when we carefully review long-term implications, not just the upfront benefit.

Assistance can be a powerful tool when it fits the rest of your profile. The key is understanding how it works, what it costs, and what it requires over time.

Real-world example

Same buyer, different down payment paths

Example scenario (for education only)

Imagine a buyer with solid income and modest savings who wants to buy a $400,000 home. We might explore three paths:

Path A – 3% down: Lower upfront cash, a bit higher payment, and monthly mortgage insurance.
Path B – 5% down: Slightly more cash up front, a lower payment, and potentially better pricing.
Path C – 3% down + assistance: Out-of-pocket funds reduced by a local program, with specific rules and terms.

None of these paths are “right” or “wrong” on their own. The best fit depends on the buyer’s payment comfort, savings goals, and how long they expect to stay in the home.

Our job together is to lay the options side by side so you can see the trade-offs clearly before you choose.

Next steps

What to have ready as we map out your options

You don’t need to have everything perfect up front. But these details help us quickly narrow in on the best down payment strategies for you:

Estimate of your current savings – checking, savings, and any funds earmarked for your home.
Potential gift sources – family members who may want to help and how much support they’re considering.
Any employer or community benefits – such as homebuyer grants, credits, or match programs.
Comfortable “leftover” balance – how much you’d like to keep after closing.
Rough purchase price or payment target – even if it’s just a range.
Timeline – whether you’re hoping to buy in the next 30–60 days or closer to 6–12 months out.

From there, we can build a plan that fits your reality today and adjusts as your savings and goals evolve.

Smart questions

Questions to ask about any down payment plan

Whether you’re working with me or another lender, these questions help you understand your options clearly:

What are my minimum down payment options based on my profile and property type?
What changes if I put more down? (Monthly payment, MI, interest costs, and required reserves.)
Do I qualify for any local, state, or employer assistance programs?
How do gifts work? (Who can give, how it’s documented, and any limits I should know about.)
If we use assistance, what are the long-term rules? (Repayment, forgiveness timelines, or recapture conditions.)
How much cash would you recommend I keep in reserves after closing?

Clear answers help turn a “guess and hope” down payment into a thoughtful, sustainable plan for your home and your broader financial life.

Ready to see what down payment options you actually have?
We’ll review your savings, income, and local programs—then build a clear, documented pre-approval and down payment plan that fits your real life, not a rule-of-thumb.

Start your pre-approval → Ask your questions first