The minimum down payment for a resale home in the United States typically ranges from 3% to 20%, depending on the loan type and lender requirements. Conventional loans often require at least 5% down for first-time buyers or 10% for repeat buyers, while conforming loans (aligned with Fannie Mae or Freddie Mac standards) usually mandate 20% down to avoid private mortgage insurance (PMI). Government-backed loans like FHA mortgages may require just 3.5% down, and VA loans often offer zero-down payment options for qualified veterans. To calculate the down payment, multiply the home’s sale price by the required percentage. For example, a $300,000 home with a 10% down payment would need a $30,000 deposit. Lenders may also consider credit scores, income, and debt-to-income ratios when finalizing terms.

The down payment percentage is determined by loan type, risk assessment, and regulatory guidelines. Conventional loans prioritize lower risk for lenders, hence the 20% threshold to eliminate PMI, which protects against default. The Federal Reserve’s 2022 report noted that 64% of first-time buyers used a conventional loan, with an average down payment of 13%, while FHA loans accounted for 12% of purchases, averaging 3.5% down. VA loans, used by 6% of buyers, enabled 100% financing for eligible veterans, reducing upfront costs. PMI costs approximately 0.5% to 1.5% of the loan amount annually for conventional loans below 20% down, making higher down payments financially advantageous. The National Association of Realtors (NAR) 2023 survey found that 17% of resale buyers used a down payment gift, and 8% relied on assistance programs, highlighting alternative funding sources. Calculating the down payment ensures compliance with lender criteria and optimizes long-term mortgage affordability. For instance, a $450,000 home with a 15% down payment requires a $67,500 deposit, covering the initial equity while aligning with conforming loan limits ($766,550 in 2024). This structured approach balances lender risk and buyer financial capacity, ensuring sustainable homeownership.