The down payment range for a $350,000 house
For a $350,000 house, your down payment will typically fall between $10,500 and $105,000, depending on the loan type and what the lender requires. The most common down payment is 20 percent of the purchase price, which would be $70,000. However, you can put down less—as little as 3 to 5 percent—if you may have access to for certain loan programs, though this means paying mortgage insurance on top of your monthly payment.
The amount you actually put down affects three things: how much you borrow, how much interest you pay over the life of the loan, and whether you pay private mortgage insurance (PMI). A larger down payment lowers your monthly payment and the total interest cost, but it also means more cash out of pocket upfront.
Your lender will tell you the minimum down payment they accept based on the loan program you choose. Federal Housing Administration (FHA) loans allow down payments as low as 3.5 percent. Conventional loans typically start at 3 to 5 percent for borrowers with strong credit. Veterans Affairs (VA) loans may require zero down payment if you meet service requirements. USDA loans in rural areas can also require zero down for may be able to access buyers.
Key Takeaways
- A 20 percent down payment on a $350,000 house is $70,000, but you can put down as little as 3 to 5 percent depending on your loan type and credit.
- Putting down less than 20 percent means you will pay private mortgage insurance (PMI) each month until you reach 20 percent equity in the home.
- FHA loans allow 3.5 percent down, conventional loans typically start at 3 to 5 percent, and VA or USDA loans may require no down payment if you meet may be able to access requirements.
- A larger down payment lowers your monthly payment and total interest cost, but requires more cash upfront; a smaller down payment preserves cash but increases your monthly obligation.
- Your credit score, debt-to-income ratio, and savings history affect both the minimum down payment a lender will accept and the interest rate they offer you.
How down payment percentage translates to dollar amounts
Down payment percentages are straightforward math, but seeing the actual dollars helps you plan. On a $350,000 purchase price, here is what different percentages mean:
| Down Payment % | Dollar Amount | Loan Amount |
|---|---|---|
| 3% | $10,500 | $339,500 |
| 5% | $17,500 | $332,500 |
| 10% | $35,000 | $315,000 |
| 15% | $52,500 | $297,500 |
| 20% | $70,000 | $280,000 |
| 25% | $87,500 | $262,500 |
The loan amount is what you actually borrow and pay back with interest. The larger your down payment, the smaller your loan, and the less interest you pay over 15, 20, or 30 years. However, the difference in your monthly payment between 5 percent and 20 percent down is significant—typically $200 to $400 per month depending on interest rates—so the choice affects your budget immediately.
What happens to your monthly payment when you put down less than 20 percent
When you put down less than 20 percent, your lender adds private mortgage insurance (PMI) to your monthly payment. PMI protects the lender if you stop paying; it does not protect you. The cost varies by lender, loan type, and credit score, but typically ranges from 0.5 to 1.5 percent of your loan amount per year, divided into monthly payments.
On a $332,500 loan (5 percent down on $350,000), PMI might add $150 to $400 per month. You pay this until you reach 20 percent equity in the home—which happens through a combination of paying down the principal and the home appreciating in value. If you put 10 percent down, you reach 20 percent equity faster and stop paying PMI sooner.
Some borrowers make extra principal payments to reach 20 percent equity faster and drop PMI. Others refinance once they have enough equity. Ask your lender upfront what their policy is for removing PMI—some require you to request it, while others remove it automatically once you hit the threshold.
Down payment requirements by loan type
Conventional loans are not backed by a government agency. Most conventional lenders require 3 to 5 percent down for borrowers with credit scores of 620 or higher. Some lenders go as low as 3 percent; others require 5 or 10 percent. Your credit score and debt-to-income ratio determine what the lender will accept.
FHA loans are backed by the Federal Housing Administration and allow down payments as low as 3.5 percent. You will pay mortgage insurance (called mortgage insurance premium, or MIP) for the life of the loan if you put down less than 10 percent. FHA loans are common for first-time buyers and people with lower credit scores, though you still need a score of at least 500 to 580 depending on the lender.
VA loans are for active-duty service members, veterans, and surviving spouses. Many VA loans require zero down payment. You pay a one-time funding fee (typically 1.5 to 3.6 percent of the loan amount) instead of a down payment, and you do not pay PMI. VA loans are among the most favorable options if you meet the service requirements.
USDA loans are for rural properties and are available to borrowers with moderate income. Like VA loans, USDA loans often require zero down payment. You pay a may provide fee instead, and there is no PMI. may be able to access depends on property location and your income relative to the area median.
How your credit score and debt affect the down payment you can afford
Lenders use your credit score and debt-to-income ratio to decide whether to lend to you and what down payment they will accept. A higher credit score (740 and above) opens doors to lower down payment options and better interest rates. A lower score (below 620) may disqualify you from conventional loans entirely, pushing you toward FHA loans with their 3.5 percent minimum.
Your debt-to-income ratio is the total of your monthly debt payments divided by your gross monthly income. Most lenders want this ratio below 43 percent. If you carry high credit card balances, car loans, or student loans, your ratio climbs, and lenders may require a larger down payment to offset the risk. Paying down debt before you apply for a mortgage can lower your ratio and improve your options.
Some lenders also look at your savings history—whether you have been consistently setting money aside. If you have been saving for years, lenders see you as lower risk and may accept a smaller down payment. If you are borrowing the down payment from family or using a gift, most lenders require documentation that it is a gift, not a loan you have to repay.
Closing costs and other money you need beyond the down payment
The down payment is not the only cash you need at closing. Closing costs typically run 2 to 5 percent of the purchase price—on a $350,000 house, that is $7,000 to $17,500. Closing costs include the appraisal, title search, title insurance, attorney fees, loan origination fees, property taxes, homeowners insurance, and HOA fees if applicable.
Some of these costs you can negotiate or shop around for. Others are fixed by law or the lender. Ask your lender for a Loan Estimate within three business days of applying; it breaks down all closing costs so you know exactly what to expect. Some sellers will cover part of your closing costs as part of the purchase negotiation, which reduces the cash you need to bring.
Plan to have your down payment plus closing costs in a bank account before you make an offer. Lenders verify the source of large deposits and want to see the money has been there for at least two months. If you are scrambling to save in the final weeks before closing, the lender may delay or deny your loan.
Strategies for saving or reducing the down payment you need
If $70,000 feels out of reach, you have options. First, explore loan programs that accept lower down payments: FHA at 3.5 percent, VA at zero, or USDA at zero if you may have access to. These programs exist because lenders and the government recognize that requiring 20 percent down locks out many buyers.
Second, consider a lower purchase price. A $300,000 house instead of $350,000 means a $10,500 down payment at 3.5 percent instead of $12,250. The monthly payment difference is substantial, and you may find a home that meets your needs at a lower price point.
Third, if you have retirement savings (401k or IRA), some plans allow you to borrow against your balance or withdraw funds penalty-free for a first-time home purchase. This is a last resort because you lose the growth on that money, but it is an option if you are stuck. Check your plan documents or call your plan administrator to see what is allowed.
Fourth, some employers and nonprofits offer down payment assistance programs. These are grants or forgivable loans that reduce the cash you need upfront. Search your employer's benefits portal or contact your local housing authority to ask what programs exist in your area.
Frequently Asked Questions
Can I put down less than 3 percent on a conventional loan?
Most conventional lenders will not go below 3 percent, and some require 5 or 10 percent. If you cannot save 3 percent, an FHA loan at 3.5 percent or a VA or USDA loan at zero down may be your only options. Talk to multiple lenders; requirements vary.
What if I put down 10 percent instead of 20 percent—how much longer do I pay PMI?
You pay PMI until you reach 20 percent equity. At 10 percent down, you need to pay down another 10 percent of the original loan through principal payments. On a 30-year mortgage, this typically takes 5 to 8 years, depending on interest rates and whether you make extra payments. Ask your lender for an estimate based on your specific loan.
Can the seller pay my down payment for me?
No, the seller cannot pay your down payment directly. However, the seller can offer a credit toward your closing costs, which frees up your cash for the down payment. Seller credits are negotiated as part of the purchase offer and are capped by lender rules—typically 2 to 6 percent of the purchase price depending on the loan type.
Do I have to put down 20 percent to avoid PMI?
Yes, 20 percent is the threshold where PMI stops on most loans. However, some lenders offer "lender-paid mortgage insurance" where the lender covers PMI in exchange for a slightly higher interest rate. This can make sense if you plan to sell or refinance within a few years, but over a 30-year loan, you typically pay more in interest than you save on PMI.
What if I save 15 percent down instead of 20 percent—is it worth it?
At 15 percent down on $350,000, you put down $52,500 and borrow $297,500. You still pay PMI, but you reach 20 percent equity faster than at 5 or 10 percent down, so you stop paying PMI sooner. The trade-off is whether the extra $17,500 you save by not putting down 20 percent is worth the PMI payments for a few years. Run the numbers with your lender to see the total cost difference.