How Much to Save for a House Down Payment (With Examples)
How much should you save for a house down payment? The answer depends on the price of the home, the type of loan and how much you want to avoid extra costs like mortgage insurance. This guide shows the numbers for common home prices and how much to save each month to get there.
Quick answer
On a $300,000 home, a house down payment is $10,500 at 3.5% (the FHA minimum), $15,000 at 5%, $30,000 at 10% and $60,000 at 20%. Saving $30,000 in 3 years at 4% APY takes about $786 a month; over 5 years about $453 a month.
House down payment amounts by home price
| Home price | 3.5% | 5% | 10% | 20% |
|---|---|---|---|---|
| $250,000 | $8,750 | $12,500 | $25,000 | $50,000 |
| $300,000 | $10,500 | $15,000 | $30,000 | $60,000 |
| $400,000 | $14,000 | $20,000 | $40,000 | $80,000 |
| $500,000 | $17,500 | $25,000 | $50,000 | $100,000 |
How much down payment do you need?
- FHA loans: as low as 3.5% down for borrowers who meet the credit requirements.
- Conventional loans: some programs allow as little as 3% down, but with less than 20% you usually pay private mortgage insurance (PMI).
- 20% down: on a conventional loan this usually avoids PMI and lowers your monthly payment.
- VA and USDA loans: eligible borrowers may qualify for 0% down.
A bigger house down payment means a smaller loan, lower monthly payments and less interest over the years. A smaller one gets you into a home sooner. There is no single right answer; it depends on your budget, local prices and how long you plan to stay.
How much to save each month
| Down payment goal | Save in 3 years (4% APY) | Save in 5 years (4% APY) |
|---|---|---|
| $30,000 | $786 | $453 |
| $60,000 | $1,571 | $905 |
| $80,000 | $2,095 | $1,207 |
Do not forget closing costs
Besides the house down payment, buyers pay closing costs such as lender fees, appraisal and title insurance. They are often several percent of the loan amount. Add them to your goal, plus a cushion for moving costs and first repairs, so you do not empty your emergency fund on day one. The CFPB has free guides to understand these costs.
Where to keep your down payment savings
Because you will need the money on a specific date, most buyers keep it in safe places: high-yield savings accounts, CDs that mature before closing or Treasury bills. Investing a down payment in stocks is risky, because a market drop could delay your purchase.
What this means for you
- Decide your target price and down payment percentage first, then calculate the monthly amount.
- Include closing costs and a cushion in your goal.
- Keep your emergency fund separate from your down payment savings.
Frequently asked questions
What is the minimum house down payment?
FHA loans allow 3.5% down for qualifying borrowers, and some conventional programs allow 3%. VA and USDA loans can allow 0% down for eligible buyers.
Is 20% down required?
No. But on a conventional loan, putting less than 20% down usually means paying private mortgage insurance until you reach enough equity.
How much should I save for a $300,000 house?
Between $10,500 (3.5%) and $60,000 (20%) for the down payment, plus closing costs and a cushion for moving and repairs.
Can I use my 401(k) for a down payment?
Some plans allow loans or withdrawals, but taxes, penalties and lost growth can make it expensive. Check your plan rules and consider the long-term cost.
How long does it take to save for a down payment?
Saving $500 a month at 4% APY, you would reach $30,000 in about 4 years and 7 months. Raising the amount or adding windfalls shortens the timeline.
Related guides and calculators
- Savings goal calculator
- CD vs high-yield savings account
- Treasury bills vs CDs vs savings accounts
- Sinking funds explained
Sources
- CFPB: Buying a house
- U.S. Department of Housing and Urban Development (HUD)
- FDIC: National rates and rate caps
- MonetaryReports: How we calculate
This guide is for educational purposes only and is not financial advice. The figures are estimates before taxes, fees and inflation, and real rates, returns and rules change over time.
