Down Payment Calculator

Two things flip at the 20% line on a conventional mortgage. First, you cross under 80% loan-to-value, the threshold the Homeowners Protection Act of 1998 uses to define when private mortgage insurance (PMI) can be cancelled, so you stop paying that extra 0.3% to 1.5% of the loan balance per year. On a $320,000 loan at 0.5% PMI, that is $1,600 a year (about $133 a month) returned to your budget. Second, most conforming lenders price loans in two tiers: their best advertised rate typically assumes 20%+ down. Putting less down often adds 0.125% to 0.25% to the rate through Fannie Mae and Freddie Mac loan-level price adjustments (LLPAs), which compounds for the full term. Both effects together mean the after-tax cost of a 10% down loan is meaningfully higher than the headline rate suggests.

FHA policy generally permits 3.5% down at scores of 580 or higher, while scores from 500 to 579 generally require 10% down. Lenders can impose stricter requirements. This calculator models the 1.75% upfront MIP and an annual MIP rate based on term, loan amount, and original LTV. For an original LTV above 90%, the model keeps annual MIP for the full loan term; at 90% or below, it uses 11 years. Compare the current HUD table and lender disclosure before choosing FHA or conventional financing.

Yes. The VA home loan program, administered by the US Department of Veterans Affairs since 1944, allows 0% down for eligible active-duty service members, veterans, National Guard, Reserves, and qualifying surviving spouses. There is no PMI requirement either, since the VA itself guarantees a portion of the loan to the lender. The catch is the VA funding fee, a one-time charge of 2.15% to 3.3% of the loan amount on a first-time use with no down payment (waived for veterans with service-connected disabilities). The fee can be financed into the loan, so it does not require cash at closing. USDA Rural Development loans are the only other true 0%-down option, but they are limited to designated rural areas and household income caps.

Three ways stack. First, you borrow less principal, so the amortized P&I shrinks proportionally; on a 7% 30-year loan, every additional $10,000 down saves about $66 a month in P&I for life. Second, crossing 80% LTV (20% down on a conventional loan) drops PMI entirely; on a $400,000 home that is often $100 to $200 a month back in your pocket. Third, lenders price LLPAs in down-payment tiers, so 20%+ down typically buys you a slightly lower rate than 10% down, compounding the saving on the full balance. The combined effect: moving from 5% down to 20% down on the same $400,000 home usually reduces the all-in monthly payment by $300 to $500, even before considering the rate-tier benefit.

For 2026, the baseline one-unit conforming loan limit is $832,750, and the high-cost ceiling is $1,249,125. County limits determine whether a loan is jumbo. Jumbo lenders set their own down-payment, credit, reserve, and debt-to-income requirements, so 20 percent down is common but not a legal requirement. Check the current county limit and lender terms for the property.