FHA, conventional, VA and USDA can produce very different answers. Start with eligibility and the complete transaction—not the smallest advertised percentage.
August recovery and review: Restored to its intended August 19, 2026 publication position and reviewed against the cited primary sources on August 27, 2026. Article dateModified reflects this review.
Several home-loan paths may require less than 5% down for a qualifying borrower and property. HUD says an FHA down payment can be as low as 3.5%. Fannie Mae HomeReady and Freddie Mac Home Possible advertise down payments as low as 3%. Eligible VA and USDA borrowers may have no-down-payment options. Those percentages are not approvals: every path has separate borrower, occupancy, property, income, credit, mortgage-insurance or program-fee requirements.
| Program path | Potential minimum | Important qualification screen |
|---|---|---|
| FHA-insured purchase | HUD says as low as 3.5% | FHA and lender credit, income, occupancy, property, appraisal and mortgage-insurance requirements. |
| Eligible conventional | Some Fannie Mae and Freddie Mac programs advertise 3% | Program eligibility, income limits where applicable, occupancy, mortgage insurance, borrower and property review. |
| VA-backed purchase | Potentially no down payment | VA eligibility and COE, entitlement, occupancy, appraisal and lender approval; funding fee may apply unless exempt. |
| USDA guaranteed purchase | Potentially no down payment | Eligible rural area, household-income requirements, primary occupancy, repayment and property eligibility. |
Down payment is only one line in the transaction. Closing costs, prepaid taxes and insurance, escrows, program fees, mortgage insurance, points, lender credits, seller contributions and verified assistance can change the total. Compare the same property and assumptions on complete written Loan Estimates.
Source note: These official pages support the adjacent program descriptions. Current controlling program documents and the complete borrower and property file govern.
Several paths may fall below 5% down for an eligible borrower and property: FHA commonly uses a 3.5% minimum investment; certain conventional programs advertise 3% down; and qualified VA or USDA borrowers may have a no-down-payment option. Each program has separate borrower, property, occupancy, income, credit, insurance or fee rules.
No. Down payment is only one part of cash to close. Closing costs, prepaid taxes and insurance, escrows, points or credits, program fees, assistance and seller contributions can change the total. Compare complete written Loan Estimates using the same property and assumptions.
No. Compare eligibility, complete monthly payment, mortgage insurance or program fees, cash to close, property restrictions and expected time in the home. The smallest down payment does not automatically produce the lowest total cost.
Bring the purchase price, county, occupancy, property type, income, debts, assets and available funds for a side-by-side eligibility review.
Educational information only. Not affiliated with or endorsed by HUD, FHA, VA, USDA, Fannie Mae, Freddie Mac or Realtor.com. Not a commitment to lend. Program availability, approval, pricing, payment, cash to close, savings and timing depend on the complete application, property and applicable program and lender requirements.