The required down payment for buying a house with a $500,000 USD down payment depends on the loan type and home price. For a conventional loan, a 20% down payment is typically required, meaning a $500,000 down payment would purchase a home priced at $2,500,000. For an FHA loan, a 3.5% down payment is mandatory, so a $500,000 down payment would cover a home costing approximately $1,428,571. Jumbo loans, used for high-cost properties, may require as little as 10% down, allowing a $5,000,000 home with a $500,000 deposit.

The down payment percentage varies based on loan programs and lender requirements. Conventional loans from Fannie Mae and Freddie Mac mandate 20% to avoid private mortgage insurance (PMI), which protects lenders if the borrower defaults. This aligns with data from the Federal Housing Finance Agency (FHFA), which reports 20% as the standard threshold for conforming loans. For government-backed loans, FHA requires 3.5% for borrowers with credit scores above 580, as noted by the U.S. Department of Housing and Urban Development (HUD). VA loans, however, allow 0% down for qualified veterans, making them a unique exception.

Jumbo loans, which exceed conforming limits (typically $766,550 in 2024), often have lower down payment minimums. Lenders like JPMorgan Chase and Bank of America offer jumbo loans with 10% down, enabling a $5,000,000 purchase with a $500,000 deposit. This flexibility supports buyers in high-cost markets, though interest rates may be higher due to increased risk. The National Association of Realtors (NAR) highlights that 20% down payments remain common, but alternative options cater to specific financial needs.

In summary, a $500,000 down payment can purchase a home priced between $1,428,571 (FHA) and $5,000,000 (jumbo loan), depending on the loan type. Lender policies, creditworthiness, and market conditions further influence eligibility and terms. Data from FHFA, HUD, and NAR underscores the importance of aligning down payment strategies with individual financial goals and loan program requirements.