How to Save for a Down Payment
Strategies to reach your home buying goal faster
Down Payment Options
3% - Minimum Conventional
PMI Required
5% - Low Down Payment
PMI Required
10% - Standard
PMI Required
20% - Traditional (No PMI)
No PMI
25% - Strong Equity
No PMI
*Based on $416,000 median home price
Top Savings Strategies
Set up automatic savings transfers
Cut subscription services
Reduce dining out expenses
Use tax refunds for down payment
Pick up a side gig
Sell items you don't need
Consider first-time buyer programs
Ask family for gift funds
Understanding PMI
Private Mortgage Insurance is required when you put down less than 20%. It protects the lender if you default.
| Down Payment | LTV Ratio | Est. PMI Rate |
|---|---|---|
| 3% | 97% | 1.5% |
| 5% | 95% | 1.2% |
| 10% | 90% | 0.8% |
| 20%+ | 80% or less | No PMI |
Advertisement
Based on NAR and CFPB home buying data 2026