How Much Of A Down Payment Do You Need For A Home Purchase?

Mortgage and Lending with Strategic Mortgage NMLS#160440

If you are looking to purchase a home, your down payment will vary based on whether or not you will occupy the home, the property type and the loan type you obtain.


Please find this handy guide, that breaks down a basic overview of down payment, based on whether you are purchasing a primary home, a secondary/vacation home or an investment property.


            As always, these are just basic guidelines and standard qualification requirements apply, but these numbers provide minimum down payments for all of the basic property and loan types. For a detailed look into what program and option might be best for your specific situation, please contact a licensed mortgage lender, such as Strategic Mortgage.


Primary Residence:

For a home that you will live in, the following down payment minimum requirements will apply.


Conventional Loans: A 3% minimum down payment is required is for all first time homebuyers and potentially for non-homebuyers who fit the Fannie Mae Home Ready standards (see our article on this program). All other home buyers require a 5% minimum down payment. Gift funds from a family member, are allowable for the down payment.


FHA Loans: A 3.5% minimum down payment is required for the purchase of a new primary home using an FHA loan. Gift funds are allowable for the down payment and FHA home loans can only be used to purchase primary residence.

VA Loans: There is no minimum down payment required to purchase a home using a VA loan. VA loans also can only be used to purchase a primary residence.


Jumbo Loans: For a primary residence, you may put as little as a 5% down payment when using a jumbo home loan.


Secondary/Vacation Homes:

            A secondary or vacation home is a property in a different metropolitan area from a primary residence that someone owns for primarily their own personal use and spends less than 50% of the year living at this property.


Conventional Loans: A 10% minimum down payment is required for the purchase of a secondary or vacation home. However, the mortgage loan on a secondary or vacation home will otherwise be priced almost identically to a primary home conventional mortgage.


Rental or Investment Homes:

            A rental or investment home is a property whose primary use is that of being rented out or for merely investment purposes.


Conventional Loans: A 15% minimum down payment is required for the purchase of a rental or investment home. The mortgage loan on a rental or investment home will also generally have a slightly higher interest rate that a primary or secondary home.


As always, everyone’s situation is unique and to properly look into your specific situation, make sure and consult with a licensed local lender such as Strategic Mortgage.


For more information on current home loan programs and options for existing and potential home owners, please contact Bill Kamboukos of Strategic Mortgage at (480) 219-3682 or by emailing: or online at  

Strategic Mortgage, LLC – AZBK#0909514 - NMLS#158804 - Equal Housing Lender

Vasilios Kamboukos – NMLS#160440


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