The short answer
There’s no single right amount. A bigger down payment lowers your monthly payment and can remove PMI; a smaller one keeps more cash in the bank for closing costs, repairs and an emergency fund.
Common starting points
| Down payment | Often used with | Good to know |
|---|---|---|
| 0% | VA and USDA loans | For eligible buyers only; fees and rules apply |
| 3%–3.5% | Some conventional loans, FHA | Expect mortgage insurance |
| 10% | Conventional | Lower payment than 3–5%, still PMI |
| 20% | Conventional | Usually no PMI; can make an offer look stronger |
Don’t forget the rest of the cash
Closing costs commonly run about 2% to 5% of the loan amount, and in a competitive market you may want room to cover an appraisal gap. Putting every dollar into the down payment can leave you short.
What sellers notice
In multiple-offer situations, a larger down payment can make an offer look more secure, especially if the appraisal comes in low. It’s one factor among several, alongside your financing type and contingencies.
Educational content. OfferBacked is not currently a lender and doesn’t issue pre-approvals or loans.