Down Payment Calculator

The minimum depends on the loan program. Conventional loans backed by Fannie Mae or Freddie Mac allow as little as 3% down through HomeReady and Home Possible (income and credit eligibility applies). FHA loans require 3.5% with a 580+ credit score or 10% with a score of 500–579. VA loans (eligible veterans) and USDA loans (eligible rural properties) allow 0% down. A larger down payment lowers your loan amount, your monthly payment and — once you reach 20% — eliminates PMI on a conventional loan.

20% is the threshold at which private mortgage insurance (PMI) is not required on a conventional loan. Putting 20% down means your LTV at origination is 80%, so the lender has equity protection without an insurer. It is a common guideline, not a legal requirement, and many buyers choose lower tiers to preserve cash for reserves, renovations or other goals. The PMI premium on a lower down payment is the cost of the trade-off.

The CFPB states that closing costs typically run between 2% and 5% of the loan amount. Common items include origination fees, appraisal ($300–$600 typically), title insurance and search, escrow or attorney fees, recording fees, and prepaids (homeowners insurance, property-tax escrow, prepaid interest). Your lender is required to provide a Loan Estimate within three business days of application listing every fee. The 3% default in this calculator is the midpoint of the CFPB range; replace it with your Loan Estimate figure once you have one.

It can. Lenders typically price risk into the rate through loan-level price adjustments (LLPAs) that vary by LTV and credit score. A lower LTV (larger down payment) often qualifies for a lower rate tier. The magnitude varies by lender, market and credit profile. This calculator uses a single illustrative rate across all tiers; to see the rate impact accurately, get quotes at different LTV points from your lender.

The minimum is 3% of the purchase price through Fannie Mae HomeReady or Freddie Mac Home Possible for eligible borrowers. Standard conventional loans typically require 5% down. In both cases the lender will require PMI until the LTV falls to 80%. Not all lenders offer 3% down programs; confirm availability and eligibility criteria with your lender. These program minimums are cited from Fannie Mae and Freddie Mac guidance and are subject to program changes.

It depends on the target amount, your current savings, your monthly saving and the rate on your savings account. For example, saving $900 per month starting from $8,000 at 4.5% annual reaches a $30,000 goal in roughly 23 months. Increasing the monthly saving by $200 shortens the timeline by roughly 4 months. The savings mode of this calculator lets you enter your own figures and adjust assumptions instantly.

On some loan types, yes. VA loans allow the VA funding fee to be financed into the loan amount. FHA allows the upfront MIP to be financed. Some lenders offer "no-closing-cost" options where the costs are either rolled into the loan balance or offset by a higher interest rate (lender credits). Rolling costs into the loan means paying interest on them over the full loan term, which increases the total cost. This calculator shows the cash-at-closing requirement; consult your Loan Estimate for the financed alternative.

Under the Homeowners Protection Act (12 U.S.C. §4901), you can request PMI cancellation in writing when your loan balance reaches 80% of the original purchase price and you have a good payment history. The servicer must automatically cancel PMI when the balance reaches 78% of the original value based on the scheduled amortization, even without a request. Equity built through appreciation rather than loan paydown does not trigger automatic cancellation under the HPA, though some lenders allow cancellation based on a new appraisal.