What you need to put down on a $100,000 house

The down payment on a $100,000 house typically ranges from $3,000 to $20,000, depending on the loan type and your lender's requirements. Conventional loans usually require 5% to 20% down ($5,000 to $20,000). FHA loans allow as little as 3.5% down ($3,500). VA loans and USDA loans may require zero down if you meet their may be able to access criteria. The exact amount depends on which loan program you use, your credit score, and what your lender will accept.

The down payment is not the only cost you pay upfront. You will also owe closing costs (typically 2% to 5% of the purchase price, or $2,000 to $5,000 on a $100,000 house), a home inspection, and possibly an appraisal. Some of these can be rolled into the loan or negotiated with the seller, but you should plan for them separately from your down payment.

Key Takeaways

  • Conventional loans on a $100,000 house require a down payment between $5,000 and $20,000, with the exact amount depending on your credit score and the lender's standards.
  • FHA loans allow down payments as low as $3,500 (3.5%) on a $100,000 purchase, making them an option if you have limited savings.
  • VA and USDA loans may require no down payment at all if you meet military service or rural property requirements.
  • Closing costs, inspections, and appraisals are separate from your down payment and typically add $2,000 to $5,000 to your upfront expenses.
  • A larger down payment lowers your monthly mortgage payment and may help you avoid private mortgage insurance (PMI).

How down payment percentage works

Down payment is expressed as a percentage of the home's purchase price. On a $100,000 house, a 5% down payment equals $5,000. A 10% down payment equals $10,000. A 20% down payment equals $20,000. The percentage you pay depends on the loan program and what the lender will accept based on your financial profile.

The remaining balance after your down payment becomes your mortgage loan amount. If you put $5,000 down on a $100,000 house, you borrow $95,000. If you put $20,000 down, you borrow $80,000. The lower your loan amount, the lower your monthly payment and total interest paid over the life of the loan.

Conventional loans: 5% to 20% down

Conventional loans are mortgages not backed by a government agency. Most conventional lenders require a minimum down payment of 5% ($5,000 on a $100,000 house), though some will go as low as 3% if your credit score is strong. The most common down payment for conventional loans is 10% to 20%.

If you put down less than 20%, you will pay private mortgage insurance (PMI). This is an insurance policy that protects the lender if you default on the loan. PMI on a $100,000 house typically costs $100 to $200 per month, depending on your down payment size and credit score. You can remove PMI once you have paid down the loan to 80% of the home's original value, which takes years.

Conventional loans typically require a credit score of 620 or higher, though scores of 740 and above get better interest rates and terms. Your debt-to-income ratio (how much you owe compared to how much you earn) also matters; most lenders want this to be 43% or lower.

FHA loans: 3.5% down with mortgage insurance

FHA loans are backed by the Federal Housing Administration and are designed for borrowers with lower down payments or credit scores. On a $100,000 house, you can put down as little as 3.5% ($3,500). FHA loans accept credit scores as low as 580, though you may get better terms with a score above 620.

FHA loans require two forms of mortgage insurance. An upfront mortgage insurance premium (UFMIP) is typically 1.75% of the loan amount, rolled into your mortgage. An annual mortgage insurance premium (MIP) is paid monthly and ranges from 0.55% to 0.80% of the loan amount per year. On a $96,500 loan (after your $3,500 down payment), this means roughly $50 to $65 per month in MIP, plus the upfront cost built into your loan.

Unlike conventional PMI, FHA mortgage insurance does not go away automatically. You pay it for the life of the loan if you put down less than 10%, or for at least 11 years if you put down 10% or more.

VA loans: Zero down for may be able to access veterans

VA loans are available to active-duty service members, veterans, and some surviving spouses. They require zero down payment and no mortgage insurance. On a $100,000 house, you can borrow the full amount with no money down.

VA loans do charge a funding fee, which is a one-time cost paid to the Department of Veterans Affairs. This fee ranges from 1.4% to 3.6% of the loan amount depending on your military branch, duty status, and whether you have used a VA loan before. On a $100,000 loan, this is typically $1,400 to $3,600, usually rolled into the mortgage. VA loans also have no maximum loan amount and typically offer competitive interest rates.

To use a VA loan, you need a Certificate of may be able to access from the VA. You can request this through the VA website or through your lender, and the process takes a few days to a few weeks.

USDA loans: Zero down for rural properties

USDA loans are backed by the U.S. Department of Agriculture and are intended for rural and some suburban properties. They require zero down payment and no mortgage insurance. The property must be in an area designated as rural by the USDA, which you can check on their website.

USDA loans charge a may provide fee, similar to the VA funding fee. This is typically 1% to 2% of the loan amount and is usually rolled into the mortgage. Your income must fall below the area median income limit, which varies by county. On a $100,000 house in a rural area, USDA loans can be a path to homeownership with no down payment if you meet the income and property location requirements.

What affects how much you need to put down

Your credit score is the single largest factor. Borrowers with scores above 740 can often put down 5% on a conventional loan and get better interest rates. Borrowers with scores between 620 and 680 may need to put down 10% to 15% or use an FHA loan instead. Scores below 620 typically require FHA or other government-backed loans.

Your debt-to-income ratio also matters. If you already have car payments, student loans, or credit card debt, your available borrowing power shrinks. A larger down payment reduces the loan amount and can help you stay within acceptable debt-to-income limits. Your employment history, savings history, and the size of your cash reserves also influence what lenders will offer.

The property itself matters too. A home inspection or appraisal that reveals problems can make lenders nervous and require a larger down payment. Some lenders also have stricter requirements for condos, investment properties, or homes in certain areas.

Frequently Asked Questions

Can I borrow the down payment from someone else?

Yes, but with restrictions. Most lenders allow a gift from a family member, but you must provide a signed gift letter stating the money is a gift, not a loan. Some lenders limit how much of your down payment can be a gift. Borrowing the down payment from a bank or credit card counts as debt and will hurt your debt-to-income ratio, so most lenders will not allow it.

What happens if I put down less than 20%?

You will pay mortgage insurance (PMI on conventional loans, MIP on FHA loans). This adds $100 to $300+ per month to your payment depending on the loan type and down payment size. Conventional PMI goes away once you reach 80% loan-to-value; FHA MIP typically stays for the life of the loan.

Can I negotiate the down payment with the seller?

Not directly, but you can ask the seller to cover some of your closing costs, which frees up cash for your down payment. This is called a seller concession. Lenders typically allow sellers to cover 2% to 6% of closing costs depending on the loan type and your down payment size.

Do I have to put down 20% to avoid mortgage insurance?

On a conventional loan, yes — 20% down eliminates PMI. On FHA loans, you need 10% down to reduce the mortgage insurance period to 11 years instead of the life of the loan. VA and USDA loans have no mortgage insurance regardless of down payment.

What if I do not have enough for a down payment?

FHA loans allow down payments as low as 3.5%, and VA and USDA loans allow zero down if you meet their requirements. Some lenders also offer down payment assistance programs through nonprofits or local housing authorities, though these vary by location and have their own requirements.