No, you do not need 20% down to buy a house. In 2026, the typical first-time buyer puts down 10%, according to the National Association of Realtors (NAR) 2025 Profile of Home Buyers and Sellers, and many loan programs allow far less: 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA and USDA loans for eligible borrowers.
The 20% figure survives because it used to be the rule, and because it is still a good target. But it is not a requirement, and waiting years to save 20% while home prices and rents rise can cost more than the mortgage insurance you pay for putting down less. The real question is not whether you can buy with less than 20% down. It is how much less, what it costs you, and whether you keep enough cash in reserve after closing.
What buyers actually put down
NAR surveys recent buyers every year, and the latest profile, covering buyers who purchased between July 2024 and June 2025, found a median down payment of 19% across all buyers. First-time buyers put down a median of 10%, the highest level for first-time buyers since 1989. Repeat buyers, who can roll the equity from their previous home into the next one, put down a median of 23%, the highest since 2003.
Put those percentages on a real price. The median existing-home sales price was $415,200 in October 2025, according to NAR. On that home, 10% down is $41,520, 19% down is $78,888, and 20% down is $83,040. The gap between the first-time median and the old 20% rule is more than $41,000. That is the difference between buying this year and saving for several more years, and for many buyers it is the whole decision.
| Buyer type | Median down | On a $415,200 home |
|---|---|---|
| First-time buyers | 10% | $41,520 |
| Repeat buyers | 23% | $95,496 |
| All buyers | 19% | $78,888 |
The first-time buyer of 2026 is also older than the stereotype suggests. The median first-time buyer was 40 years old in NAR's 2025 profile. Many first-time buyers are not fresh graduates; they are renters in their late 30s who have spent years saving, and a 10% down payment on a median-priced home is already a large sum to assemble.
Minimum down payments by loan type
Your minimum depends on the loan program, not on tradition. A conventional loan backed by Fannie Mae or Freddie Mac can go as low as 3% down for qualified buyers, including through Fannie Mae's HomeReady program for lower-income borrowers. An FHA loan requires 3.5% down with a credit score of 580 or higher, and 10% if your score is between 500 and 579. VA loans for eligible service members, veterans, and surviving spouses require 0% down, as do USDA loans for eligible rural properties. There is no single minimum. There is a menu, and the right choice depends on your credit, your income, and where you are buying.
Putting down less than 20% on a conventional loan usually means paying private mortgage insurance (PMI) until you reach 20% equity. PMI typically costs roughly 0.3% to 1.5% of the loan amount per year, depending on your down payment and credit score, and it protects the lender, not you. The good news is that PMI is not permanent: on a conventional loan you can request removal once you reach 80% loan-to-value, and it drops off automatically at 78%. FHA loans work differently, with mortgage insurance premiums that usually last for the life of the loan unless you refinance into a conventional loan later.
What 10% vs 20% does to your monthly payment
The trade-off for a smaller down payment is a larger loan, a higher monthly payment, and PMI on top. Here is what that looks like on the median-priced home at $415,200, using a 30-year fixed rate of 7.18%, the rate from Freddie Mac's weekly survey for the week ending November 5, 2026. These are principal-and-interest figures only, before taxes, insurance, and PMI:
| 10% down | 20% down | |
|---|---|---|
| Down payment | $41,520 | $83,040 |
| Loan amount | $373,680 | $332,160 |
| Monthly principal & interest | $2,531 | $2,250 |
| PMI | Yes, until 20% equity | No |
The 10% buyer pays about $281 more a month in principal and interest, plus PMI, which can add roughly another $100 to $200 a month on a loan this size. Over the first five years, that is roughly $17,000 to $29,000 extra in payments. But the 10% buyer also kept $41,520 in cash. If that cash is your emergency fund, your moving fund, and your repair fund, keeping it may be worth far more than the extra monthly cost. A home with a new roof needed in year two does not care that you avoided PMI.
There is also the cost of waiting. If you rent at $2,000 a month while saving the extra $41,520, two years of rent costs $48,000, and the home you want may cost more by then. Waiting is not free. The honest comparison is not 10% versus 20% in a vacuum. It is buying now with 10% versus renting for two more years and buying later with 20%, with prices, rates, and rent all moving in the meantime.
How much should you actually save?
Your down payment is only part of the cash you need. Closing costs typically run 2% to 5% of the loan amount, which is $7,000 to $19,000 on a $373,680 loan. Then there are moving costs, basic furniture, and the first repair, which always arrives sooner than expected. A realistic cash target for a first-time buyer is the down payment, plus closing costs, plus three to six months of expenses held back as an emergency fund. If hitting 20% down would empty your savings, you are not ready at 20%. You are ready at 10% with reserves, or you are not ready yet.
Where does the down payment come from? According to NAR, most first-time buyers save it from income, and a majority draw on personal savings. Gifts from family are common, and some buyers tap retirement accounts, which is usually a bad idea: withdrawals can trigger taxes and penalties, and they raid the same future you are trying to secure. Down payment assistance programs exist in most states, often as grants or forgivable loans for first-time buyers, and they are worth checking before you assume you must save every dollar yourself. Your state's housing finance agency is the place to start.
When 20% is still the right call
A bigger down payment still wins in several situations. If you can put 20% down and keep a full emergency fund, you skip PMI entirely, get a smaller loan, and start with real equity, which protects you if prices dip. If your credit score is below 680, a larger down payment can meaningfully improve your rate and your PMI price. And if you are buying in a competitive market, a larger down payment and fewer contingencies can make your offer stronger, since sellers see less risk that the financing falls through.
The deciding factor is your monthly payment, not the percentage. Lenders generally want your total housing payment, including taxes, insurance, and PMI, to stay near 28% of your gross monthly income, and your total debts under roughly 36% to 43%. Run your real numbers, including property tax and homeowner's insurance for the actual home you want, before you fixate on a down payment percentage. A 10% down payment on a home you can comfortably afford beats a 20% down payment on a home that stretches you thin.
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You do not need 20% down to buy a house in 2026. The median first-time buyer puts down 10%, or about $41,520 on the median-priced $415,200 home, and loan programs allow as little as 3% conventional, 3.5% FHA, and 0% for VA and USDA. A smaller down payment means a bigger loan, a higher payment, and PMI, roughly $281 more a month in principal and interest plus PMI on the median home. But it also means buying years sooner and keeping cash for the emergencies that homeownership guarantees. Save the down payment, the closing costs, and a real emergency fund, then buy the home whose monthly payment fits your income. Figures are estimates from NAR and Freddie Mac for general information only, not financial advice.