How Much Down Payment Do You Need to Buy a Home in the US? 3, 3.5, 20 and 25 to 40 Percent Explained (2026)
· Mortgage
There is no single answer to the down payment question because it depends on the loan: conventional loans from 3 to 5 percent, FHA at 3.5 percent, jumbo loans usually 10 to 20 percent, foreign national programs commonly 25 to 40 percent. Here is how each tier works, the 2026 loan limits, terms and how rates are set.
The most common misconception about buying in the US is that you must put 20 percent down. Twenty percent is the threshold for avoiding mortgage insurance, not the threshold for getting a loan. Here is the down payment picture by loan type.
Conventional loans: a primary residence can be financed with as little as 3 to 5 percent down. First-time buyer programs start at 3 percent; most buyers use 5 percent or more. Below 20 percent you pay private mortgage insurance (PMI) as part of the monthly payment until your equity reaches 20 percent, at which point you can ask to cancel it. Second homes generally start at 10 percent down and investment properties at 15 to 25 percent. Conventional loans rely on a US credit score, typically 620 or higher, with noticeably better pricing above 740.
FHA loans: 3.5 percent down with more flexible credit requirements, designed for owner-occupants with limited savings or thinner credit, at the cost of higher mortgage insurance and an owner-occupancy requirement.
Loan limits decide whether you are in jumbo territory. For 2026 the baseline conforming limit is 832,750 dollars, and in high-cost Los Angeles and Orange counties the limit is 1,249,125 dollars. Anything above that is a jumbo loan, held on the lender's own balance sheet, so underwriting is stricter: down payments are commonly 10 to 20 percent with higher credit and reserve requirements. In cities like San Marino and Irvine, where medians sit above 2,000,000 dollars, most buyers are using jumbo financing.
Foreign national loans: buyers without a green card or US credit history use dedicated programs. Down payments in this market are commonly 25 to 40 percent, higher again for investment properties, depending on the lender, the property type and how complete your file is. Lenders substitute international credit reports, home-country bank records and income documents for a US score. Rates run somewhat higher than conventional, and a common path is to buy with a foreign national loan and refinance into a conventional loan once US income and credit exist.
Self-employed buyers with low reported income can use bank statement loans, underwritten on deposits rather than tax returns; investors can use DSCR loans, underwritten on the property's rental income rather than personal income. Both typically require 10 to 25 percent down.
How much you can borrow is mostly a debt-to-income question. The lender divides all monthly debt, including the new mortgage's principal, interest, property tax, insurance and HOA, by gross monthly income; conventional programs generally cap that ratio around 43 to 50 percent. A household earning 200,000 dollars a year with no other debt can usually carry a loan of roughly 900,000 to 1,000,000 dollars at current rates, though the exact figure depends on that day's rate and your other debts. Pre-approval takes a day or two; get it before touring.
Terms and rates. The 30-year fixed is the standard American mortgage, with an unchanging payment for 30 years; 15-year fixed and adjustable-rate (ARM) products also exist. Rates move daily and differ between lenders on the same day, so we do not publish rate figures; what sets your rate is credit score, down payment, loan type, property type and occupancy. Nearly all loans can be paid off early without a prepayment penalty.
Common questions. Can I pay the mortgage in RMB? No; payments are drafted in dollars from a US bank account, so funds must be exchanged and moved first. How long must the down payment sit in the account? Lenders typically review the last two months of statements, and large deposits need a documented source, so plan your exchange early. What else besides the down payment? Closing costs of roughly 2 to 3 percent of the price, plus lender-required reserves, usually a few months of payments.
How to check a lender. Every US loan officer and mortgage company has an NMLS number that can be verified free on the NMLS Consumer Access site. Our team includes licensed loan personnel (Treasure Mortgage, NMLS 1242102) who place conventional, jumbo, foreign national, bank statement and DSCR loans with multiple lenders and compare terms; the same borrower can receive materially different offers from different institutions.
Text your situation (status, income type, approximate down payment, target city) to (626) 202-9573 (text preferred) or add us on WeChat. We will tell you which loan type fits, roughly how much you can borrow and what to set aside, free of charge, and you decide from there.