Your down payment is part of the plan.
Explore how down payment size affects cash to close, mortgage insurance and the money you retain after a home purchase.
Talk through your optionsThere is no universal 20% rule
A 20% down payment is not required for every mortgage. Different programs have different minimums and eligibility requirements. A smaller down payment may help preserve savings, while a larger one can reduce the amount financed and may affect mortgage insurance and pricing.
The question is not simply “What is the least I can put down?” It is “What leaves me with a sustainable payment and enough money for life after closing?”
Account for more than the down payment
- Loan and third-party closing costs.
- Prepaid insurance, taxes and escrow funding when applicable.
- Moving, immediate repairs and household setup.
- Any required reserves and your own emergency savings.
Gift funds and assistance
Some programs may allow eligible gift funds or assistance, subject to specific source and documentation rules. Availability is not universal. Discuss the source before moving money, and keep records of any transfer.
Compare two realistic scenarios
Ask Harman to illustrate different down payments using the same property and loan assumptions. Compare the total monthly payment, cash to close, insurance costs and savings left after the transaction.
FURTHER READING
CFPB: Understanding conventional loans HUD: FHA loans VA: Purchase loan eligibility and benefits USDA: Single Family Housing Guaranteed Loan Program CFPB: Understanding your Loan EstimateGeneral educational information. Your loan’s requirements and terms must be confirmed for your application. Content reviewed November 4, 2026.