How much of a down payment do you require? Do you require 20% or 10% down like my bank does?

Question

Zach Brown · Accepted Answer

No, 20% is not required, and that's one of the most persistent myths in home buying. Conventional loans go as low as 3% down for qualified buyers, FHA is 3.5% down with a 580 credit score, and VA and USDA both allow 0% down for eligible borrowers. What 20% down does is eliminate mortgage insurance, which is why some lenders present it as the standard. It's a way to lower your payment, not a requirement to get approved.