You have more options than you think.

If you’re planning to buy a home with a conventional loan, one of the first questions you’re probably asking is:

👉 “How much do I need for a down payment?”

The answer? It depends — but you have far more flexibility than the old “20% rule” would suggest.

Let’s break down how conventional loan down payments work, what your options are, and how your choice can impact monthly payments, interest rates, and mortgage insurance.

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📉 Minimum Down Payment for a Conventional Loan

✅ First-time homebuyers: As little as 3% down
✅ Repeat buyers: Minimum 5% down
✅ Investment properties: 15–20% down (depending on type and occupancy)

📘 “First-time buyer” doesn’t always mean “first home ever.” If you haven’t owned in the past 3 years, you may qualify.

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💡 Common Down Payment Amounts

Purchase Price	3% Down	5% Down	20% Down
$300,000	$9,000	$15,000	$60,000
$400,000	$12,000	$20,000	$80,000
$500,000	$15,000	$25,000	$100,000

Your down payment affects:

• Whether you pay PMI (private mortgage insurance)
• Your monthly payment
• Your interest rate (in some cases)

We’ll show you side-by-side scenarios so you can choose what works best for your goals — not someone else’s rule of thumb.

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❌ Do You Have to Put 20% Down?

Absolutely not.

Many buyers choose 5–10% down to:

• Keep more cash in savings
• Cover moving or renovation costs
• Avoid waiting months or years to buy

And remember: you can remove PMI later as you build equity — especially if home values are rising in your area.

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🧠 Can You Use Gift Funds?

Yes — conventional loans allow gifted funds for down payments and closing costs, especially for:

• First-time buyers
• Family-to-family gifts
• Qualified programs or grants

PRMI helps structure your loan to use these funds effectively and within guidelines.

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💳 Down Payment vs. Closing Costs

Your down payment is just one part of your upfront costs.

You’ll also want to plan for:

• Appraisal and inspection
• Title fees and lender charges
• Prepaid taxes and insurance

📘 We’ll help estimate all of this before you even make an offer — no surprises.

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🏢 Why PRMI?

As a direct lender, we:

• Offer conventional loans with flexible down payment options
• Help you understand how each choice impacts your future
• Process your loan in-house for a faster, smoother experience

We don’t just quote rates — we walk you through a strategy that fits your life.

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👇 Want to Know What You Can Afford to Put Down?

Let’s look at your savings, goals, and loan options — and build a game plan that works for you.