Do you need 20 percent down to buy a house?

Updated November 12, 2026

No. The typical first time buyer puts down 10 percent, and some loans ask for as little as 3.5 percent.

The facts

The median down payment for first time buyers was 10 percent, according to the National Association of REALTORS® 2025 Profile of Home Buyers and Sellers.

FHA loans allow a down payment of 3.5 percent with a credit score of 580 or higher, under HUD's rules for FHA loans.

Tennessee also offers down payment help. The Tennessee Housing Development Agency, THDA, lists a second loan with no payments of up to $6,000 or up to $10,000, and an option with payments of up to $15,000. See how THDA works.

What a smaller down payment costs

A down payment under 20 percent usually adds mortgage insurance to the monthly payment, and a smaller down payment means a larger loan. A lender can show you the payment at different down payment amounts.

See it on your numbers

Move the savings slider in the calculator to see how your down payment changes your price range. Open the calculator.

Sources: National Association of REALTORS®, 2025 Profile of Home Buyers and Sellers; HUD Handbook 4000.1; THDA down payment assistance page, read November 12, 2026.