The down payment on a $300,000 house ranges from $6,000 to $90,000, depending on the loan type and your lender's requirements
The amount you put down is not fixed. It depends on which mortgage program you use, what your lender requires, and what you can afford. A conventional loan typically asks for 3% to 20% down. An FHA loan asks for 3.5% down. A VA loan (if you may have access to) asks for 0% down. On a $300,000 purchase price, that means anywhere from $0 to $60,000 in cash at closing—before property taxes, insurance, and other fees.
The lower your down payment, the more you borrow, and the more interest you pay over the life of the loan. You also pay a monthly insurance premium (called PMI on conventional loans, or MIP on FHA loans) if you put down less than 20%. That premium stays on your loan until you reach 20% equity or refinance.
Key Takeaways
- A 3% down payment on $300,000 is $9,000; a 20% down payment is $60,000; the rest is borrowed money you repay with interest.
- Putting down less than 20% means you pay mortgage insurance every month until you build enough equity, adding hundreds of dollars annually to your payment.
- FHA loans allow 3.5% down ($10,500) but require upfront and annual mortgage insurance; conventional loans at 3% down also require insurance but may have lower rates if your credit is strong.
- Your actual cash at closing includes the down payment plus closing costs (typically 2% to 5% of the purchase price), which can add $6,000 to $15,000 more.
How down payment percentage translates to actual dollars
The down payment is a percentage of the purchase price. On a $300,000 house, the math is straightforward: multiply the price by the percentage, and you get the cash due at closing.
| Down Payment % | Cash Due | Amount Borrowed | Mortgage Insurance Required |
|---|---|---|---|
| 3% | $9,000 | $291,000 | Yes |
| 5% | $15,000 | $285,000 | Yes |
| 10% | $30,000 | $270,000 | Yes |
| 15% | $45,000 | $255,000 | Yes |
| 20% | $60,000 | $240,000 | No |
The $9,000 or $60,000 is only the down payment itself. Your total cash at closing will be higher because you also pay closing costs—title insurance, appraisal, loan origination fees, property taxes, and homeowners insurance. Those typically run 2% to 5% of the purchase price, or $6,000 to $15,000 on a $300,000 house. Ask your lender for a Loan Estimate within three days of applying; it will show all costs you owe at closing.
Conventional loans: 3% to 20% down, with PMI below 20%
A conventional loan is a mortgage not backed by the federal government. Most lenders require a minimum of 3% down, though some require 5% or more depending on your credit score and debt-to-income ratio. On a $300,000 house, 3% is $9,000.
If you put down less than 20%, you pay private mortgage insurance (PMI) every month. PMI protects the lender if you stop paying; it does not protect you. The cost varies by lender, credit score, and loan amount, but typically ranges from 0.5% to 1.5% of the loan amount annually. On a $291,000 loan (after a 3% down payment), that could be $1,455 to $4,365 per year, or roughly $120 to $365 per month added to your mortgage payment.
PMI stays on your loan until you reach 20% equity in the home (either by paying down the principal or by the home appreciating). You can request removal once you hit that threshold, though some lenders require you to wait a set period first. Refinancing can also remove PMI if your home has gained value or your credit has improved.
FHA loans: 3.5% down with upfront and annual mortgage insurance
An FHA loan is backed by the Federal Housing Administration and is designed for borrowers with lower credit scores or smaller down payments. The minimum down payment is 3.5%, which on a $300,000 house is $10,500.
FHA loans require two types of mortgage insurance. The first is an upfront mortgage insurance premium (UFMIP), typically 1.75% of the loan amount, paid at closing or rolled into your loan. On a $289,500 loan (after 3.5% down), that is about $5,066. The second is an annual mortgage insurance premium (MIP), paid monthly, which typically ranges from 0.55% to 0.8% of the loan amount per year. That works out to roughly $160 to $230 per month on a $289,500 loan.
Unlike conventional PMI, FHA mortgage insurance does not automatically drop off at 20% equity. If you put down less than 10%, the insurance stays for the life of the loan. If you put down 10% or more, it drops off after 11 years. Many borrowers refinance into a conventional loan once they have built enough equity to avoid this long-term cost.
VA loans: 0% down if you are a veteran or active-duty service member
If you are a veteran, active-duty service member, or surviving spouse, you may be able to use a VA loan, which requires no down payment. On a $300,000 house, you would borrow the full amount with no cash down.
VA loans do not require mortgage insurance. Instead, you pay a one-time VA funding fee, typically 1.4% to 3.6% of the loan amount depending on your military status and whether you have used a VA loan before. On a $300,000 loan, that fee could be $4,200 to $10,800, usually rolled into the loan itself. VA loans also typically have lower interest rates than conventional or FHA loans, which can save you tens of thousands over the life of the mortgage.
To use a VA loan, you need a Certificate of may be able to access from the VA. You can request one through the VA website or ask your lender to help you obtain it.
What happens if you cannot save 20% down
Most first-time buyers do not put down 20%. Putting down 3% to 10% is common, and it means paying mortgage insurance. The trade-off is that you can buy sooner with less cash saved up. Over time, as you pay down the principal and your home appreciates, you build equity and can eventually refinance or remove the insurance.
If you are short on cash for closing costs, some lenders offer programs that let you roll closing costs into the loan or ask the seller to contribute toward them (called seller concessions). Some employers, nonprofits, and state housing programs also offer down payment assistance, though these vary by location and income. Your lender or a local housing counselor can tell you what is available in your area.
How your down payment affects your monthly payment and total interest
A larger down payment lowers your monthly mortgage payment and the total interest you pay over 30 years. Here is how it plays out on a $300,000 house at a 7% interest rate over 30 years:
| Down Payment | Loan Amount | Monthly Payment (Principal + Interest) | Total Interest Paid (30 Years) |
|---|---|---|---|
| 3% ($9,000) | $291,000 | ~$1,939 + PMI | ~$408,000 |
| 10% ($30,000) | $270,000 | ~$1,797 + PMI | ~$377,000 |
| 20% ($60,000) | $240,000 | ~$1,596 | ~$335,000 |
These numbers do not include property taxes, homeowners insurance, HOA fees, or maintenance—all of which are part of your true housing cost. The interest rates shown are examples; your actual rate depends on your credit score, debt-to-income ratio, loan type, and current market conditions. Ask your lender for a personalized estimate based on your situation.
Frequently Asked Questions
Can I borrow money for my down payment?
Most lenders require that your down payment come from your own savings or a gift from a family member. Borrowed money—including personal loans or credit card cash advances—typically disqualifies you or raises red flags during underwriting. Some lenders allow a gift letter from a relative as long as the relative does not expect repayment. Ask your lender about their gift policy before you apply.
What if I put down 15% instead of 20%—do I still pay mortgage insurance?
Yes. On a conventional loan, you pay PMI on any down payment below 20%. At 15% down on a $300,000 house ($45,000), you would still owe PMI on the remaining $255,000 borrowed. The insurance typically drops off once you reach 20% equity, which could take 5 to 10 years depending on your payment schedule and home appreciation.
Is it better to put down 3% and invest the rest, or save up for 20%?
That depends on your interest rate, investment returns, and comfort with debt. If your mortgage rate is 7% and you could earn 8% or more investing, the math favors putting down 3%. But you pay PMI every month, which adds cost. If you are risk-averse or want the lowest possible monthly payment, saving for 20% eliminates PMI and lowers your payment. Run the numbers with your lender and a financial advisor for your specific situation.
Can I remove PMI before I reach 20% equity?
On a conventional loan, you can request PMI removal once you reach 20% equity, though some lenders require you to have paid on time for at least two years first. If your home has appreciated significantly, you can refinance into a new loan with a higher equity position and no PMI. FHA mortgage insurance is harder to remove and may stay for the life of the loan if you put down less than 10%.
What if the house appraises for less than the purchase price?
If the appraisal comes in low, your down payment percentage stays the same, but you are borrowing a larger percentage of the home's actual value. This can trigger a renegotiation of the purchase price, a request for a larger down payment, or a deal falling through. Your lender will not lend more than the appraised value, so you would need to cover the gap in cash or walk away.