# Minimum Down Payment to Buy a House: 2026 Guide

By Lerea Arellano (@lereaarellano) · Published 2026-09-14

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You most likely do **not** need a 20% down payment to buy a house. For most qualified buyers in 2026, the real minimum is between **0% and 3.5%** of the purchase price, depending on the loan program you choose. As a mortgage loan originator in Pueblo, Colorado (NMLS #1309362, with Sunflower Bank), I hear this myth constantly — and it stops too many first-time buyers before they ever reach out to a lender. Save less, buy sooner, and let this guide show you the exact down payment each loan type requires.

#### Key Takeaways

-   You don't need 20% down — most loans accept 0% to 3.5%
-   FHA loans allow a 3.5% down payment with a 580 credit score
-   VA and USDA loans offer 0% down to qualified buyers
-   Down payment assistance programs can cover your upfront costs
-   A higher down payment still lowers your monthly payment and insurance

## What is the minimum down payment by loan type?

The table below shows the lowest down payment each major program will accept. Specifics vary by lender and market, but these are the industry-standard minimums.

Loan type

Minimum down payment

Best for

**Conventional**

3%

Buyers with credit scores of 620 or higher who want flexible terms

**FHA**

3.5%

First-time buyers with scores as low as 580 and limited savings

**VA**

0%

Veterans, active-duty service members and qualifying spouses

**USDA**

0%

Buyers purchasing in eligible rural and suburban areas

## How an FHA loan gets you in with 3.5% down

For many first-time buyers, the Federal Housing Administration (FHA) loan is the most realistic entry point. It lets you put down **as little as 3.5%** of the purchase price with a credit score of 580 or higher — and buyers with scores between 500 and 579 can still qualify with a 10% down payment ([Rize](https://rizemtg.com/blog/fha-loan-requirements)). That flexibility is why FHA backs mortgages for borrowers who might not clear conventional standards, which usually demand a 620 score. The trade-off is mortgage insurance: you pay an up-front premium of 1.75% of the loan amount plus an annual premium, and with less than 10% down that annual payment typically lasts for the life of the loan unless you refinance ([Rocket Mortgage](https://www.rocketmortgage.com/learn/fha-loans)).

## When a VA or USDA loan means 0% down

Eligible veterans, active-duty service members and qualifying spouses can buy with **no down payment** on a VA loan, and they skip private mortgage insurance entirely. USDA loans offer the same zero-down entry for buyers purchasing in designated rural and suburban areas, which includes much of southern Colorado. The catch with both is eligibility, not savings: VA loans require an eligible military record, and USDA loans carry income caps and property-location rules. When you qualify, 0% down means your entire cash position can go to closing costs, moving, and an emergency fund instead.

0%down payment required on VA and USDA loans

## Can down payment assistance cover the rest?

If a 3.5% down payment is still too heavy, help exists. Sunflower Bank partners with **Down Payment Resource** to run a free eligibility check that matches Colorado buyers against assistance programs — and the tool is most powerful for people who assume they don't qualify. Notably, **38%** of down payment assistance programs do not have a first-time homebuyer requirement, so repeat buyers may still qualify ([Sunflower Bank](https://www.sunflowerbank.com/mortgage-lending/down-payment-assistance-for-pueblo-colorado)).

Assistance typically arrives as a grant you never repay or a low- or zero-interest loan, and it can cover both the down payment and closing costs. Eligibility caps vary by program — sales price limits can range from $200,000 to $900,000 across different programs ([Sunflower Bank](https://www.sunflowerbank.com/mortgage-lending/down-payment-assistance-for-pueblo-colorado)). Used well, a grant can cut your cash-to-close so far that the 20% myth stops being a gatekeeper and homeownership becomes a budgeting question instead.