The options
| Down payment | Who it fits |
|---|---|
| 3% | First time buyers on standard loans, or income qualified buyers on HomeReady and Home Possible (generally at or below 80% of area median income) |
| 5% | Most primary home buyers, and two to four unit primary homes |
| 10% | Second homes |
| 15% to 25% | Investment property, 15% for one unit and 25% for two to four |
| 20% | No PMI |
Conventional down payment options from 3% to 20%
3%
First time or income qualified
5%
Most buyers, 2 to 4 unit primary
10%
Second homes
15% to 25%
Investment property
20%
No PMI
Typical minimums. Credit and property type affect what you need.
Conventional down payment options at a glance.
Is 20% worth it?
Not always. Waiting years to save 20% can cost more in rising prices and rent than PMI would. Many buyers put less down, then remove PMI later.
My own take, as someone who started with a fourplex: getting in the door usually matters more than avoiding PMI. Keep a cash cushion after closing, because a new roof or AC unit doesn't care how much you put down. Also see HomeReady and Home Possible, which can lower PMI at 3% down.
First time buyer, defined
Note: for Fannie Mae and Freddie Mac, owning a rental generally means you're no longer a first time buyer. Florida Housing looks at principal residences instead.
For conventional purposes, a first time buyer generally means no one on the loan has owned a home in the past three years. That opens the 3% down option on standard loans, and can waive some pricing adjustments for buyers at or below their area's median income.
HomeOne: 3% down without an income cap
Freddie Mac's HomeOne allows 3% down for first time buyers on a one unit primary home, with no income limit. It's a strong option for first time buyers who earn too much for HomeReady or Home Possible. See first time homebuyer benefits.
Gifts
Gifts from relatives, a fiancé or a domestic partner can cover the down payment on primary and second homes, with a gift letter and a paper trail. Gifts aren't allowed for investment property. See gifts and seller help by loan.
Florida assistance
Florida Housing offers assistance paired with specific conventional first mortgages, including forgivable options of 3% to 5% of the loan amount that are forgiven over five years, plus FL Assist and Hometown Heroes. See Florida down payment assistance.
3% down as a first time buyer
Taylor, a first time buyer with a 720 score, bought a townhome with 3% down. Her parents gifted part of it. Her PMI was modest, and she plans to request removal once she reaches 20% equity.
Frequently asked questions
What is the minimum down payment for a conventional loan?
3% for first time buyers and income qualified buyers, 5% for most others.
Do I need 20% down?
No. Below 20% you'll have PMI, which can be removed later.
Can a gift cover my down payment?
Yes for primary and second homes, not investment property.
Is there conventional down payment assistance in Florida?
Yes, including forgivable options paired with specific conventional loans.