The down payment on an $800,000 house ranges from $16,000 to $400,000, depending on the loan type and your lender's requirements

The amount you put down is not fixed by law — it depends on which mortgage program you use. Conventional loans typically require 3% to 20% down. FHA loans allow 3.5% down. VA loans and USDA loans may require nothing down if you meet their criteria. A lender may also demand more than the minimum if your credit score is lower or your debt-to-income ratio is high.

On an $800,000 purchase, 3% down is $24,000. 5% is $40,000. 10% is $80,000. 20% is $160,000. The lower your down payment, the higher your monthly mortgage payment and the more you pay in interest over the life of the loan. You will also pay mortgage insurance if you put down less than 20% on a conventional loan.

Key Takeaways

  • Conventional loans on an $800,000 house typically require 3% to 20% down, meaning $24,000 to $160,000 from your own funds.
  • FHA loans allow 3.5% down ($28,000) but come with mortgage insurance that stays on the loan for the full term if you put down less than 10%.
  • VA and USDA loans may require zero down payment if you meet military service or rural property requirements, but not all $800,000 properties may have access to.
  • Putting down less than 20% on a conventional loan triggers private mortgage insurance (PMI), which adds $200 to $400+ per month to your payment depending on the loan size and your credit score.
  • Your lender may require a larger down payment than the minimum if your credit score is below 620 or your debt-to-income ratio exceeds 43%.

Conventional loans and the 3% to 20% range

Most mortgages are conventional loans — they are not backed by a government agency. On an $800,000 house, conventional lenders typically allow down payments as low as 3%, which is $24,000. Some lenders will go lower (2% or even 1%) if you have a strong credit score and stable income, but 3% is the standard floor.

The catch is private mortgage insurance (PMI). If you put down less than 20%, your lender requires you to pay PMI — an insurance policy that protects the lender if you default. On an $800,000 loan with 3% down, PMI typically runs $250 to $400 per month, depending on your credit score and the exact loan amount. That cost stays on your payment until you reach 20% equity in the home, which takes years.

Putting down 20% ($160,000) eliminates PMI entirely and is the point where most lenders stop requiring extra fees. Between 3% and 20%, the more you put down, the lower your PMI cost and the lower your monthly payment overall.

FHA loans and the 3.5% minimum

FHA loans are backed by the Federal Housing Administration and allow down payments as low as 3.5%, which is $28,000 on an $800,000 house. FHA loans are often easier to get than conventional loans if your credit score is between 580 and 620, or if your debt-to-income ratio is higher than a conventional lender will accept.

FHA loans require mortgage insurance in two forms: an upfront premium (usually 1.75% of the loan amount, rolled into your mortgage) and an annual premium that stays on your payment. On an $800,000 purchase with 3.5% down, the annual insurance is roughly $200 to $250 per month. Unlike conventional PMI, FHA insurance does not go away when you reach 20% equity — it stays for the full 30-year loan term if you put down less than 10%.

FHA loans also have a maximum loan limit that varies by county. In most areas, the limit is around $766,550, which means an $800,000 purchase may exceed the cap. Check your county's FHA limit before assuming an FHA loan is an option.

VA and USDA loans with zero down

If you are an active-duty service member, veteran, or surviving spouse, you may be able to get a VA loan with zero down payment. VA loans do not require a down payment, PMI, or a minimum credit score (though most lenders set their own floor around 580 to 620). You pay a one-time VA funding fee (typically 2.3% of the loan amount for most borrowers) that can be rolled into the mortgage.

USDA loans also allow zero down payment, but only for properties in rural areas designated by the USDA. An $800,000 house in a rural zone may may have access to, but most $800,000 properties are in suburban or urban areas that do not meet USDA requirements. USDA loans also require an upfront may provide fee and an annual insurance premium.

Both VA and USDA loans have their own limits and restrictions. A VA loan on an $800,000 house is possible in most states, but a USDA loan is unlikely unless the property is in a may have access to rural area.

How your credit score and debt affect the down payment requirement

Lenders do not just look at the down payment percentage — they also look at your credit score and how much debt you already carry. If your credit score is below 620, most conventional lenders will require a down payment of at least 10% to 15%, not the standard 3%. If your debt-to-income ratio (the total of all your monthly debt payments divided by your gross monthly income) exceeds 43%, a lender may ask for 15% to 20% down to offset the risk.

On an $800,000 house, a 10% down payment is $80,000 and a 15% down payment is $120,000. These amounts are significantly higher than the 3% minimum, so your financial profile matters as much as the loan type. Getting pre-approved by a lender before you start house hunting tells you exactly what down payment they will require based on your actual credit and income.

Closing costs are separate from the down payment

The down payment is only part of the cash you need at closing. You also pay closing costs — fees for the appraisal, title search, title insurance, loan origination, attorney fees, and other services. On an $800,000 house, closing costs typically range from $16,000 to $32,000 (2% to 4% of the purchase price).

Some sellers will cover part or all of the buyer's closing costs as part of the negotiation, but you should assume you will pay them yourself. If you put down 3% ($24,000) and closing costs are $24,000, you need $48,000 in total cash to close — not just the $24,000 down payment.

Putting down more than the minimum

Putting down more than the minimum has real benefits. A 10% down payment ($80,000) eliminates PMI faster than a 3% down payment and lowers your monthly payment by several hundred dollars. A 20% down payment ($160,000) eliminates PMI entirely and is the point where most lenders stop treating you as a higher-risk borrower.

The tradeoff is that money sitting in your down payment is not in savings or investments. If you have $100,000 in savings and put $80,000 down, you are left with only $20,000 for emergencies. Many financial advisors suggest keeping at least three to six months of expenses in savings even after buying a house. Calculate what you can afford to put down without leaving yourself short.

Frequently Asked Questions

Can I borrow the down payment from family?

Yes, but the lender needs to know about it. If a family member gives you money as a gift, you will need a signed gift letter stating it does not need to be repaid. If you borrow the money as a loan, the lender will count that debt in your debt-to-income ratio, which may lower how much they will lend you or require a larger down payment.

What happens if I put down less than 3%?

Conventional lenders rarely go below 3%, but some offer 2% or 1% down programs if your credit score is 700 or higher and your debt-to-income ratio is below 36%. The tradeoff is higher PMI and a higher interest rate. FHA loans at 3.5% down are often cheaper than a 1% conventional loan when you factor in all the fees.

Can I remove PMI once I reach 20% equity?

Yes, on conventional loans. Once you have paid down the loan to 80% of the original purchase price, you can request PMI removal. Your lender may require a new appraisal to confirm the home's value. On FHA loans, PMI stays for the full loan term if you put down less than 10%, so you cannot remove it.

Is the down payment the same as the earnest money deposit?

No. The earnest money deposit is a smaller amount (typically 1% to 3% of the purchase price) you put down when you make an offer to show you are serious. It goes into escrow and is credited toward your down payment at closing. The down payment is the full amount you owe at closing after the earnest money is applied.

Do I need to put down 20% to avoid PMI?

On conventional loans, yes — 20% down eliminates PMI. On FHA loans, you need 10% down to avoid PMI staying for the full loan term, but you still pay an upfront insurance fee. On VA and USDA loans, there is no PMI at any down payment level, though both have their own insurance or funding fees.