Down Payment
Calculator.
Estimate exactly how much cash you need upfront —
by home price, loan type, and down payment percentage —
including your monthly payment and PMI.
Down payment needed
⚠ PMI applies — put 20% down to remove it
Loan amount
Monthly P&I
Full breakdown
| Loan type | Min. down | Min. amount* | PMI/MIP |
|---|---|---|---|
| Conventional | 3% | $12,000 | Yes (<20%) |
| FHA | 3.5% | $14,000 | Yes (MIP) |
| VA | 0% | $0 | No |
| USDA | 0% | $0 | Annual fee |
*Based on current home price entered above.
Beycome buyer program*
Turn ~3% into up to 2% back, use it for your down payment or closing costs.
* Beycome Buyer Program: In a traditional transaction, the seller typically pays ~3% to the buyer's agent. With Beycome, we keep 1% and credit the rest (up to ~2%) back to you. Any amount above our 1% fee is returned to you. Credits vary by price, state laws, and market conditions. If no commission is offered by the seller, a minimum fee of $1,599 applies to the buyer.
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Buy your next home with Beycome — and turn the traditional commission** into cash back toward your down payment.
We take 1% of the commission paid by the seller — everything above that is credited back to you.
Start buying smarter 🚀** Beycome Buyer Program: In a traditional transaction, the seller typically pays ~3% to the buyer's agent. With Beycome, we keep 1% and credit the rest (up to ~2%) back to you. Any amount above our 1% fee is returned to you. Credits vary by price, state laws, and market conditions. If no commission is offered by the seller, a minimum fee of $1,599 applies to the buyer.
How to read your results.
Five numbers decide whether you can afford to close. Here's what each one means.
Down payment needed.
The large orange number is the cash you must bring to the closing table — separate from closing costs, which run another 2%–5% of the purchase price. If you put 10% down on a $400,000 home, you need $40,000 in savings just for the down payment, plus roughly $8,000–$20,000 in closing costs. Budget for both.
The split bar shows your equity from day one.
The green bar shows what percentage of the home you own outright the moment you close. The blue portion is what the bank owns. A 10% down payment means you start with 10% equity. That matters because lenders remove PMI once you reach 20% equity — so the bigger your initial down payment, the faster you hit that milestone.
PMI badge tells you your insurance status.
A yellow badge means you'll pay Private Mortgage Insurance every month — a cost that protects the lender, not you. On a $360,000 loan at 0.7% PMI, that's roughly $210/month extra until you reach 80% LTV. A green badge means you've cleared the 20% threshold and PMI doesn't apply. VA loans never have PMI.
Minimum down by loan type.
The table at the bottom of the results highlights your active loan type and shows what every loan type requires. Conventional: 3% minimum. FHA: 3.5% (or 10% with low credit). VA and USDA: 0%. If you're eligible for a VA loan, switching loan types in the dropdown will immediately show you the 0% scenario — often eye-opening for first-time buyers who don't realize $0 down is an option.
The Beycome rebate can cover part of your down payment.
When you buy with Beycome, the traditional 2%–3% buyer agent commission gets returned to you as cash back. On a $400,000 home, that's up to $8,000 back in your pocket — which you can use toward your down payment, closing costs, or rate buydown points. The green box at the bottom of the results shows exactly how much you'd receive and what your effective out-of-pocket becomes.
- 1 Down payment amount. Home price × down payment % = cash needed. $400,000 × 10% = $40,000.
- 2 Loan amount. Home price − down payment = the amount you borrow. $400,000 − $40,000 = $360,000 loan.
- 3 Monthly P&I. Using the standard amortization formula: M = P[r(1+r)ⁿ]/[(1+r)ⁿ−1]. At 6.8% on $360,000 for 30 years → ≈ $2,353/mo.
- 4 PMI. If down payment < 20% on a conventional loan: PMI ≈ loan × 0.7% ÷ 12. $360,000 × 0.007 ÷ 12 = $210/mo added to your payment.
What is a down payment?
The upfront cash that determines your loan size, your monthly payment, and whether you pay PMI every month for years.
Your skin in the game.
A down payment is the portion of the home's purchase price you pay at closing from your own funds — not borrowed. It signals to the lender that you're financially committed to the property. The larger your down payment, the smaller your loan, the lower your monthly payment, and the less risk the lender takes on — which often translates to a better interest rate.
The 20% myth — and the reality.
The "20% rule" comes from the PMI threshold: put less than 20% down on a conventional loan and you'll pay private mortgage insurance until you reach 20% equity. But most buyers today put down far less. According to the National Association of Realtors, the median down payment for first-time buyers is around 8%, and repeat buyers average about 19%. Programs like FHA (3.5% minimum), HomeReady (3%), and VA/USDA (0%) make homeownership accessible without 20% in hand.
Down payment sources lenders accept.
Most lenders accept: personal savings and checking accounts, investment accounts (with seasoning), proceeds from the sale of another property, employer assistance programs, and gift funds from family members (with a gift letter). What lenders scrutinize closely are large recent deposits — they need to verify the funds weren't borrowed. Loans, personal credit lines, and cash advances don't count as down payment funds.
Down payment vs. closing costs — don't confuse them.
Many first-time buyers budget only for the down payment and get surprised at the closing table. Closing costs — including lender fees, title insurance, appraisal, escrow, and prepaid interest — typically add another 2%–5% of the purchase price on top of your down payment. On a $400,000 home with 10% down, you'd need $40,000 for the down payment plus an additional $8,000–$20,000 for closing. Always budget for both.
Down payment by loan type.
Every loan program has its own minimum — and its own trade-offs. Here's what each one requires on a $400,000 home.
Conventional loan
Conventional loans are the most flexible — no upfront mortgage insurance premium, PMI drops off at 20% equity, and there's no loan limit for standard conforming loans (up to $766,550 in 2024 for most areas). The higher your credit score and down payment, the better your rate. At 20% down, PMI disappears entirely.
FHA loan
FHA loans are the go-to for buyers with lower credit scores or limited savings. The trade-off: you pay an upfront MIP (1.75% of the loan, rolled into the loan balance) and an ongoing annual MIP (0.55% for 30-year loans). If you put less than 10% down, MIP stays for the life of the loan. At 10%+ down, it cancels after 11 years.
VA loan
VA loans are the most powerful mortgage benefit available — 0% down, no PMI, and competitive rates. The only cost is a one-time VA funding fee (1.25%–3.3% of the loan depending on service history and whether you've used the benefit before). Some veterans with service-related disabilities are exempt. There's no loan limit for eligible borrowers with full entitlement.
USDA loan
USDA loans require 0% down for homes in eligible rural and suburban areas — which covers more geography than most buyers expect. There are income limits (typically up to 115% of the area median income). The annual guarantee fee (0.35%) is lower than FHA's MIP (0.55%), making USDA a cheaper long-term option for qualifying buyers who don't need the full flexibility of conventional loans.
Is 20% really necessary?
No. But it has real advantages. Here's when it's worth it — and when it isn't.
Why 20% matters: PMI and equity.
The 20% threshold eliminates PMI on conventional loans, which can add $100–$300+ per month to your payment depending on the loan size. Over five years, that's $6,000–$18,000 in extra costs — money that builds no equity. On a $400,000 home, saving from 10% to 20% down takes you from $40,000 to $80,000 upfront, but removes ~$210/month in PMI. You break even on the extra savings in about 19 years — so if you're staying long-term, 20% wins mathematically.
Why less than 20% can be smart.
In a market where home prices are rising, buying sooner with 10% down and paying PMI can be better than waiting two more years to save the extra 10%. If the home appreciates $40,000 while you're saving, you've "paid" far more than the PMI would have cost. Time in market often beats PMI avoidance. Additionally, keeping extra cash liquid — for repairs, moving costs, or emergencies — reduces financial stress after closing.
The 10% sweet spot.
Many experienced buyers choose 10% as a pragmatic middle ground. It's enough to qualify for better conventional loan rates, keeps PMI manageable (you'll reach 20% equity faster than with 3%–5%), and leaves cash available for closing costs and reserves. At 10% on a $400,000 home, your PMI (~$210/mo) will drop off in roughly 7–9 years — far shorter than the lifetime of a 30-year mortgage. Use this calculator to model 3%, 10%, and 20% side by side to find your own inflection point.
How to eliminate PMI faster.
You can request PMI cancellation when your loan-to-value ratio reaches 80% (based on the original purchase price, not current market value). To get there faster: make extra principal payments, request a new appraisal if your home has appreciated significantly (for conventional loans), or refinance once you've built 20% equity. The Homeowners Protection Act requires lenders to automatically cancel PMI when the balance reaches 78% of the original value on schedule — but you can request it earlier at 80%.
Frequently asked questions.
Everything you need to know about down payments, PMI, and saving for your first home.
Our clients have saved over $220.0 M to date.
Calculator Disclaimer
This down payment calculator is provided for educational and illustrative purposes only. Results are estimates and do not constitute financial, mortgage, or lending advice.
Calculations assume a fixed-rate, fully amortizing mortgage. Adjustable-rate mortgages (ARMs), interest-only loans, balloon payments, and other non-standard structures are not modeled.
PMI estimates use an approximate rate of 0.7% annually for conventional loans under 80% LTV. Actual PMI rates vary by lender, credit score, loan-to-value ratio, and loan program. FHA MIP rates are based on published HUD guidelines and may change.
VA funding fees and USDA guarantee fees are not included in the monthly payment displayed. Consult your lender for a full cost estimate including all fees.
Down payment minimums reflect general program guidelines as of 2024. Actual lender requirements, eligibility, and qualification criteria vary. Always verify current requirements with a licensed mortgage professional.
The Beycome buyer rebate (2%) is illustrative. Actual rebate amounts depend on purchase price, state regulations, and are subject to a $1,599 minimum commission. Not available in all states.
This tool does not factor in property taxes, homeowners insurance, HOA fees, or closing costs — use the affordability calculator for a full monthly payment breakdown.