Buying · Updated September 8, 2026
A smaller down payment changes both sides.
You need less cash upfront, but borrow more. The monthly cost matters just as much as the down payment.
A 20% down payment is not the only possible starting point. A smaller percentage can make the upfront cash easier to reach, while increasing the loan and potentially adding mortgage insurance. Actual loan choices depend on eligibility and lender terms.
| Down | Down payment | Cash to buy & move | Monthly ownership |
|---|---|---|---|
| 3.5% FHA | $14,000 | $29,000 | $3,398 |
| 5% | $20,000 | $35,000 | $3,335 |
| 10% | $40,000 | $55,000 | $3,205 |
| 20% | $80,000 | $95,000 | $2,785 |
Illustration: 6% interest, 30 years, 3% closing costs, $3,000 moving. Monthly totals include estimated tax, insurance, mortgage insurance where applicable, and upkeep. HOA and utilities are zero here. Keep your reserve in addition to the cash shown. The 3.5% option includes FHA insurance; it is not an eligibility check or a loan quote.
Try this example in the calculator (opens in a new tab)The interactive example uses $7,200 monthly take-home, $2,500 non-housing spending, $110,000 savings and a $15,000 reserve. Change the down payment to compare the same home.
Your savings are not all down-payment money
First choose what to keep untouched. Then allow for closing, moving, and repairs. Only the rest is available for the down payment. The CFPB describes closing costs as separate from the down payment; our 3% starting estimate should be replaced with actual costs as you learn them.
Why the home-price number moves
With the same income and savings, changing the percentage changes two limits: the price your cash can support and the price whose monthly costs fit. The calculator finds the highest price that meets both. A smaller percentage will not always produce a higher affordable price.
Compare the price, monthly savings, and reserve together. If one option uses money you want for another purpose, change that assumption rather than treating the headline as a recommendation to stretch.
Compare with your savingsSee the full cost assumptions before relying on an illustration.