Residential · Calculator
Down Payment
Down payment, total cash to close, PMI implications, and side-by-side scenarios across conventional, FHA, VA, USDA, and jumbo programs.
Loan Program
Standard loan starting at 3% down. PMI required below 20% down; auto-removes at 78% LTV via amortization.
Property & Down Payment
Down payment: $80,000
From a documented family-member gift letter.
Closing & Cash
= $12,000 on a $400,000 purchase
First-year insurance, tax escrow, daily interest.
Held in escrow at offer acceptance — credits to closing.
Cash from Borrower
$90,000
After $5,000 earnest
Cash Breakdown
Loan Summary
Down Payment Scenarios
Common down-payment levels for a $400,000 purchase.
| Down % | Down $ | Loan | Cash to Close |
|---|---|---|---|
| 3% (min) | $12,000 | $388,000 | $27,000 |
| 5% | $20,000 | $380,000 | $35,000 |
| 10% | $40,000 | $360,000 | $55,000 |
| 15% | $60,000 | $340,000 | $75,000 |
| 20% | $80,000 | $320,000 | $95,000 |
Frequently asked
About this calculator.
How much down payment do I really need?
It depends on the loan program. Conventional starts at 3% (5% if not a first-time buyer); FHA at 3.5%; VA and USDA at 0%; jumbo typically at 10%. The "20%" rule is about avoiding PMI, not about qualifying — you can buy a home with much less down than 20%, you'll just pay PMI until you reach 20% equity.
What is PMI and when do I pay it?
PMI (private mortgage insurance) protects the lender when you put less than 20% down on a conventional loan. It typically runs 0.3%–1.5% of the loan amount annually, billed monthly. PMI auto-removes at 78% LTV through normal amortization, or you can request removal at 80% LTV if your home value supports it.
Can I use gift funds for the down payment?
Yes on conventional, FHA, USDA, and jumbo loans (jumbo caps the gift portion at 50% of the down payment). The donor must be a family member or close relative, and the funds must be documented with a gift letter and bank statements. VA loans don't typically use gift funds because they require zero down.
What are closing costs?
Closing costs are third-party fees (appraisal, title, escrow, recording, lender fees) plus prepaids (first year of insurance, property tax escrow, daily interest). Total runs ~2–4% of the purchase price in most markets. The default 3% above is a reasonable estimate; we'll quote your exact closing costs upfront once we have your address.
What is earnest money?
Earnest money is a deposit (typically 1–3% of price) you put up when your offer is accepted. It's held in escrow and credited to your down payment or closing costs at the closing table. If you back out for a non-contractual reason, you can lose it; if the deal closes, it just becomes part of your cash to close.
Tighter on cash than you'd like?
There's almost always a path.
Down-payment assistance, gift funds, lender credits, structured concessions — the path that fits your scenario isn't usually the obvious one. Twenty minutes will tell you if there's room to move.
Prefer to talk first? Call (707) 583-3666