You may need far less than you think. In Oregon, Washington, and Arizona, some loans require $0 down (VA and USDA), FHA is as little as 3.5%, and many conventional loans start at just 3%. Down payment assistance can lower it further. Here is what each loan actually requires, so you can plan with confidence.
By Mindy Hay, Senior Loan Officer · NMLS #292224 · Updated September 2026
The right answer depends on which loan fits you. Here is the minimum down payment for the most common programs:
| Loan type | Minimum down | Good fit for |
|---|---|---|
| VA loan | $0 | Eligible veterans, active-duty military, some spouses |
| USDA loan | $0 | Eligible homes in qualifying rural and suburban areas |
| FHA loan | 3.5% | First-time buyers, lower credit scores |
| Conventional | 3% to 5% | Stronger credit, avoid mortgage insurance sooner |
| Jumbo | Often 10%+ | Higher-priced and luxury homes |
Two loan types can finance 100% of the purchase price. VA loans are for eligible veterans, active-duty service members, and some surviving spouses, with no down payment and no monthly mortgage insurance. USDA loans offer $0 down for eligible homes in qualifying areas, and "rural" covers far more of Oregon, Washington, and Arizona than most buyers expect. You will still have closing costs, but those can sometimes be covered by seller credits or gift funds.
FHA loans require as little as 3.5% down and are flexible on credit, which makes them a favorite for first-time buyers. Many conventional loans start at just 3% down for qualified buyers, and the private mortgage insurance can be canceled later once you build enough equity (unlike FHA). Mindy will compare the two side by side so you see the real monthly and long-term difference.
Down payment assistance (DPA) is help, often a loan or grant, that covers part of your down payment or closing costs. Programs and eligibility vary by state and location, and they change over time. If saving the down payment is the hurdle, ask Mindy to check what you may qualify for, it is one of the most overlooked ways to get into a home sooner.
This is the biggest myth in home buying. You do not need 20% down. Twenty percent simply lets you skip mortgage insurance on a conventional loan, but it is not required, and it is often smarter to keep cash in reserve for moving, repairs, and emergencies. Plenty of buyers get in with 3 to 5 percent, or $0 down when they qualify.
Beyond the down payment, plan for closing costs (typically a few percent of the price) plus earnest money when you make an offer. The good news: seller credits, lender credits, and gift funds can help cover these. Mindy will give you a clear, itemized estimate up front so there are no surprises.
Mindy Hay is a senior loan officer with Union Home Mortgage, based in Tigard and serving the greater Portland metro, Southwest Washington, and Arizona. Want to know the lowest down payment you qualify for? A quick conversation is the fastest way to find out.
It depends on the loan: VA and USDA can be $0 down, FHA is as low as 3.5%, and many conventional loans start at 3%. Down payment assistance can lower it further. Mindy will match you to the lowest-down option you qualify for.
No. Twenty percent avoids mortgage insurance on a conventional loan, but it is not required. Many buyers put down 3 to 5 percent, and keeping cash in reserve is often smarter.
It is help, often a loan or grant, that covers part of your down payment or closing costs. Availability and terms vary by program and location. Ask Mindy what you may qualify for.
Real answers on what you qualify for, with no pressure.