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Mortgage Glossary

Down Payment

Mike Starr·Reviewed August 2026

A down payment is the upfront amount paid by the buyer toward the home's purchase price, with the remainder financed by the mortgage. Down payments are expressed as a percentage of the purchase price. A 20% down payment eliminates PMI on conventional loans. Minimum down payments vary by loan type: 3% conventional, 3.5% FHA, 0% VA and USDA.