How Much Down Payment You Need for a $300,000 House
The down payment on a $300,000 house typically ranges from $9,000 to $90,000, depending on the loan type and your lender's rules
The amount you put down is not fixed by law—it depends on what kind of mortgage you get. A conventional loan usually requires 3% to 20% down. An FHA loan (backed by the Federal Housing Administration) often allows 3.5% down. A VA loan (for military members and veterans) may require 0% down. USDA loans (for rural properties) also may require 0% down. On a $300,000 house, 3% is $9,000, and 20% is $60,000.
Your lender will tell you the minimum they accept based on your credit score, income, and debt. The lower your down payment, the higher your monthly payment and the more interest you pay over time. You will also pay mortgage insurance (PMI on conventional loans, MIP on FHA loans) if you put down less than 20%, which adds to your monthly cost.
Key Takeaways
- Conventional loans typically require 3% to 20% down on a $300,000 house, which means $9,000 to $60,000.
- FHA loans allow as little as 3.5% down ($10,500), but you will pay mortgage insurance for the life of the loan.
- VA and USDA loans may allow 0% down if you meet military service or rural property requirements.
- Putting down less than 20% means you will pay mortgage insurance on top of your regular payment, increasing your total monthly cost.
- Your lender sets the exact minimum based on your credit, income, and the property itself, not just the purchase price.
Conventional loans: 3% to 20% down
A conventional loan is a mortgage not backed by a government agency. Most lenders offering conventional loans want at least 3% down, though some want 5% or 10%. On $300,000, that is $9,000, $15,000, or $30,000. The exact minimum depends on your credit score and debt-to-income ratio (how much you owe each month compared to what you earn).
If you put down less than 20%, you will pay private mortgage insurance (PMI). This is an extra monthly charge—typically 0.5% to 1.5% of the loan amount per year, split into monthly payments. On a $291,000 loan (after a 3% down payment), PMI might run $120 to $360 per month. You can stop paying PMI once you have paid down the loan to 80% of the home's value, but that takes years.
If you put down 20% ($60,000), you avoid PMI entirely. This is why many people save for a 20% down payment—it lowers the total cost of borrowing, even though it takes longer to save.
FHA loans: 3.5% down, but mortgage insurance is permanent
An FHA loan is backed by the Federal Housing Administration and is designed for buyers who cannot save a large down payment or have lower credit scores. The minimum down payment is 3.5%, which on $300,000 is $10,500. Your credit score can be as low as 580 (though some lenders want 620 or higher).
The catch is mortgage insurance premium (MIP). You pay an upfront MIP when you close (usually 1.75% of the loan amount, added to what you borrow), and then a monthly MIP for the life of the loan. On a $289,500 loan, the upfront MIP is about $5,066, which gets rolled into your mortgage. Monthly MIP typically runs 0.55% of the loan per year. You cannot remove this insurance, even after you have paid down the loan significantly.
FHA loans cost more over time than conventional loans, but they let you buy sooner if you do not have $60,000 saved. Compare the total monthly payment (principal, interest, taxes, insurance, and MIP) to a conventional loan before deciding.
VA loans: 0% down for may be able to access military members and veterans
If you are on active duty, a veteran, or a surviving spouse of a service member, you may may have access to for a VA loan through the Department of Veterans Affairs. VA loans require 0% down on a $300,000 house—you borrow the full amount. There is no mortgage insurance.
Instead, you pay a VA funding fee (typically 1.4% to 3.6% of the loan amount, depending on your service history and down payment). This fee is usually rolled into the loan, so you do not pay it upfront in cash. On a $300,000 loan with no down payment, the funding fee might be $4,200 to $10,800.
VA loans often have lower interest rates than conventional loans and no PMI, which makes them cheaper over time despite the funding fee. You must get a Certificate of may be able to access from the VA to apply. Your lender can help you request one, or you can get it yourself through the VA website.
USDA loans: 0% down for rural properties
USDA loans are backed by the U.S. Department of Agriculture and are for buyers in rural areas who meet income limits. Like VA loans, USDA loans require 0% down. You borrow the full $300,000 with no down payment and no PMI.
You will pay a may provide fee (typically 1% to 2% of the loan amount) and an annual fee (0.3% to 0.5% of the loan balance per year). These are usually rolled into the loan or split into monthly payments. USDA loans often have competitive interest rates and lower monthly costs than FHA loans.
The property must be in an may be able to access rural area, and your household income must not exceed the limit for your county (limits vary widely). Your lender can tell you whether a specific property and your income may have access to.
How down payment size affects your monthly payment
The larger your down payment, the smaller the loan you need to borrow, and the lower your monthly payment. Here is how it works on a $300,000 house at a 7% interest rate over 30 years (these are example numbers; your actual rate will differ):
| Down Payment | Loan Amount | Monthly Payment (Principal + Interest) | Plus PMI or MIP | Total Monthly |
|---|---|---|---|---|
| 3% ($9,000) | $291,000 | $1,938 | ~$145 | ~$2,083 |
| 5% ($15,000) | $285,000 | $1,897 | ~$120 | ~$2,017 |
| 10% ($30,000) | $270,000 | $1,796 | ~$85 | ~$1,881 |
| 20% ($60,000) | $240,000 | $1,596 | $0 | ~$1,596 |
This table shows principal and interest only. Your actual monthly payment also includes property taxes, homeowners insurance, and HOA fees if applicable. These vary by location and property. The table assumes a conventional loan; FHA loans have higher insurance costs, and VA or USDA loans have no PMI but may have other fees.
Where down payment money comes from
Lenders require proof that your down payment is your own money, not borrowed. Common sources include savings, a gift from a family member (you may need a signed letter saying it is a gift, not a loan), or proceeds from selling another property.
Some programs help with down payments. State and local housing finance agencies offer down payment assistance grants or forgivable loans in some areas. The National Housing Trust Fund, Community Development Block Grants, and nonprofit organizations sometimes fund down payments for low-income buyers. Your lender or a local housing counselor can tell you what is available in your area.
If you do not have the full down payment saved, you have three paths: save longer, look for a loan with a lower down payment requirement (like FHA or USDA), or explore down payment assistance programs. Each has trade-offs in cost and timing.
Frequently Asked Questions
Can I borrow my down payment from someone?
No. Lenders require that your down payment come from your own funds or a gift. If you borrow the money, you must disclose it, and it counts as debt on your application, which lowers how much you can borrow. A gift from a family member is allowed if you provide a signed letter stating it is a gift, not a loan.
What if I only have $5,000 saved for a $300,000 house?
An FHA loan requires only 3.5% down ($10,500), so you would need to save more or explore down payment assistance programs. Some nonprofits and state agencies offer grants or forgivable loans. A housing counselor can help you find programs in your area. Alternatively, you could look at less expensive properties or wait and save more.
Does a larger down payment lower my interest rate?
Often yes, but not always. Lenders typically offer lower interest rates to borrowers with larger down payments because the lender's risk is lower. However, your credit score, income, and the current market matter too. Always ask your lender for rate quotes at different down payment levels to compare.
Can I remove PMI from a conventional loan?
Yes, once you have paid the loan down to 80% of the home's original purchase price. On a $300,000 house, that is when the loan balance reaches $240,000. You can request removal in writing, and your lender must remove it automatically at 78% of the original value. This takes years of payments.
Is an FHA loan cheaper than a conventional loan with 3% down?
Not always. FHA loans have permanent mortgage insurance, while conventional PMI can be removed. Over 30 years, a conventional loan often costs less, but FHA loans allow lower credit scores and may have lower interest rates. Compare the total monthly payment for both before deciding.