Short answerLess than many people think. VA and USDA loans can require no down payment, FHA requires 3.5% with a 580 or higher score, and some conventional loans allow 3%. Putting 20% down on a conventional loan avoids private mortgage insurance. Indiana's IHCDA programs can help with the down payment for eligible buyers.
Minimums by loan type
| Loan | Minimum down | On a $215,000 home |
|---|---|---|
| VA | 0% for eligible veterans | $0 |
| USDA | 0% in eligible areas, with income limits | $0 |
| Conventional (some programs) | 3% | $6,450 |
| FHA | 3.5% with a 580 or higher score | $7,525 |
| Conventional without mortgage insurance | 20% | $43,000 |
Do not forget closing costs
Closing costs and prepaid items are separate from the down payment. See buyer closing costs in Indiana.
Help with the down payment
See Indiana down payment assistance. Gift funds from family are also allowed on most loans with a gift letter.
Loan rules and rates change and depend on your file. Your lender has the final word on what you qualify for.
Frequently asked questions
Is 20% down required?
No. It avoids private mortgage insurance on a conventional loan, but many buyers put down less.
Can I use a gift for my down payment?
Most loan programs allow gifts from family with documentation.
Keep reading
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email [email protected].
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
- HUD, FHA Single Family Housing Policy Handbook 4000.1
- VA home loans
- USDA single family housing guaranteed loan program
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.