Figuring out how much to put down on a home can feel overwhelming—but you don’t have to do it alone. At Trust Home Loans, we’re here to walk you through your options and help you choose the path that fits your financial goals and lifestyle.

Every buyer or investor has a unique situation, and we’re here to help you find the loan program that makes the most sense for you.

Low Down Payment Options

FHA Loan

An FHA loan allows you to buy a home or condo with as little as 3.5% down. However, lower down payments come with a trade-off: mortgage insurance (often called PMI).

PMI is typically required when your down payment is less than 20%, and the smaller your down payment, the higher the insurance cost.

USDA Loan

Looking for a home in a rural or suburban area? You may qualify for a USDA loan, which offers zero down payment.

Keep in mind that household income limits apply, and PMI may still be required for down payments under 20%.

VA Loan

If you’re a qualifying military veteran or active-duty service member, a VA loan could offer you up to 100% financing—no down payment needed.

VA loans are a great benefit for those who have served, offering flexible terms and competitive interest rates.

Other Financing Options

Some borrowers may also qualify for non-conforming loans, such as 80/20 loan setups, where a second mortgage covers the down payment—ideal if you’re trying to avoid PMI or conserve cash.

Not sure where you stand with income or credit? We offer programs for a wide range of financial situations.

So, How Much Should You Put Down?

There’s no one-size-fits-all answer. A larger down payment may lower your monthly payments, but smaller down payments can free up cash for other investments or savings.

That’s why it’s important to talk with a loan specialist who can help you evaluate your options based on your budget and long-term plans.

What’s the Cost of a Lower Down Payment?

Going with a smaller down payment often comes with:

• Higher interest rates

• Higher mortgage insurance premiums

The good news? PMI doesn’t last forever. Once you build enough equity—usually 20% or more—you may be able to refinance and eliminate the mortgage insurance.

The Upside of Low Down Payments

Despite the added costs, there are also benefits to putting less money down:

• More cash on hand at the time of purchase

• Greater return on investment as the property appreciates

• Flexibility to invest your savings elsewhere

Plus, interest on your mortgage is often tax-deductible—potentially giving you more money back come tax season.

Final Thoughts: What Works for You?

Just because you qualify for a certain loan amount doesn’t mean it’s the right monthly payment for your lifestyle. It’s all about what feels comfortable for you.

Ready to explore your options? Reach out to one of our loan specialists today. At Trust Home Loans, we’re committed to helping you find a down payment strategy that makes sense for your budget and your future.