Calculate how long it will take to save your down payment and what percentage you can afford. See the impact of different down payment sizes on your loan.
Input the target home price and the down payment percentage you are aiming for.
Add your current savings amount, monthly savings you can contribute, and expected annual savings growth rate.
See how many months until you reach your down payment goal and how different savings amounts affect your timeline.
Minimum down payments: conventional loans 3-5%, FHA loans 3.5%, VA and USDA loans 0%. However, putting down 20% eliminates PMI (saving $100-$400/month) and often gets you a better rate. The right amount depends on your savings, income stability, and financial goals.
A larger down payment means: lower monthly payments, no PMI if 20%+, lower interest rate, more equity from day one, and a smaller loan easier to qualify for. The downside is tying up more cash that could be invested elsewhere.
A smaller down payment means: you buy sooner, keep more cash liquid for emergencies and investments, and can take advantage of rising home prices now rather than waiting to save more. FHA and conventional loans with 3-5% down are fully viable strategies.
PMI (Private Mortgage Insurance) is required on conventional loans with less than 20% down. It costs 0.5-1.5% of your loan annually (roughly $100-$400/month on a $300K loan). Once your loan-to-value ratio reaches 80%, you can request PMI cancellation.
This is a personal finance decision. Many people use high-yield savings accounts or short-term bonds for down payment savings — not stock market investments — to preserve capital for a purchase within 2-5 years. Stocks can lose 30-40% just before you need the money.
Yes. Many states and local governments offer down payment assistance programs, grants, and forgivable loans for first-time buyers. FHA, VA, and USDA loans have low or zero down payment requirements. Check with your state housing finance agency for local programs.
On a $400K home at 7% for 30 years: 5% down ($20K) = $2,528/month P+I. 20% down ($80K) = $2,129/month P+I. The $399/month difference ($4,788/year) plus eliminated PMI makes a significant long-term financial impact.
At a 5% target on a $400K home ($20K), saving $1,000/month takes 20 months. At 20% ($80K), it takes 80 months (6.7 years). Many buyers use gifts from family, down payment assistance, or move to a lower-cost area to shorten this timeline.
