Conventional Loan Down Payment Calculator and Requirements

A conventional loan down payment calculator estimates the cash you would put toward a home purchase and the loan amount left to finance. Enter the purchase price and a down payment amount or percentage to see the implied loan balance and down payment share; actual conventional-loan requirements vary by loan and borrower.

Formula

Down payment percentage equals the down payment divided by the home purchase price, multiplied by 100. The estimated loan amount equals the purchase price minus the down payment.

• price is the home purchase price in dollars.
• down is the cash down payment in dollars.
• pct is the down payment as a percentage of the purchase price.
• loan is the estimated amount financed before any separately financed costs.

In symbols: pct = (down ÷ price) × 100; loan = price − down. The calculator treats the down payment as a fixed dollar amount. It allows a zero down payment for arithmetic purposes, but that does not mean a conventional lender will offer a zero-down loan. The down payment cannot exceed the purchase price; check that the amount you enter is no larger than the price.

Worked Example

Using the calculator’s default values, the purchase price is $350,000 and the down payment is $70,000.

1. Divide the down payment by the price: $70,000 ÷ $350,000 = 0.20.
2. Convert the ratio to a percentage: 0.20 × 100 = 20.00%.
3. Subtract the down payment from the purchase price: $350,000 − $70,000 = $280,000 estimated loan amount.

Assumptions

• The price is the agreed home purchase price, not the home’s assessed value or a lender’s appraisal.
• The entered down payment is paid toward the purchase price and is not borrowed separately.
• The estimate excludes closing costs, prepaid expenses, taxes, insurance, mortgage insurance, escrow, and other fees.
• This is a cash-and-loan calculation, not an eligibility, payment, or approval calculation.

How Conventional Down Payment Requirements Work

A conventional mortgage is generally a home loan that is not insured or guaranteed through a government-backed mortgage program. “Conventional” describes a broad category, not one universal down payment rule. The required minimum can depend on the lender, the loan program, the property, the intended occupancy, and the borrower’s application. Therefore, there is no single down payment percentage that applies to every conventional loan.

Some conventional loan programs permit down payments below 20% for eligible borrowers and transactions. A 20% down payment is often discussed because putting down less than 20% may mean paying private mortgage insurance (PMI) on some conventional loans. PMI protects the lender, not the borrower. The exact coverage, cost, cancellation conditions, and treatment depend on the loan and applicable requirements; ask the lender for the terms in writing. A down payment of 20% should not be mistaken for a universal minimum.

Likewise, a low advertised minimum is not a promise that every applicant qualifies for it. Lenders assess the full application and the property, and individual program conditions can apply. Ask the lender to identify the specific loan program and its minimum contribution, any occupancy or property conditions, and whether funds from gifts or other sources are permitted.

What the Down Payment Changes

For a fixed purchase price, a larger down payment reduces the amount financed. That changes the loan-to-value ratio (LTV), which compares the loan amount with the value used by the lender. The calculator uses purchase price as its reference, so its implied LTV is approximately 100% minus the down payment percentage. A lender’s LTV calculation can use an appraisal or other program-specific valuation, so it may not match this simple estimate.

• Loan balance: A larger down payment means a smaller starting principal, assuming the purchase price and other financed amounts do not change.
• Cash needed: The down payment is only one part of the funds needed to complete a purchase. Closing costs and prepaid items may be additional.
• Mortgage insurance: A down payment below a relevant threshold may lead to PMI, but the threshold and terms should be confirmed for the actual loan.
• Cash reserves: Money used at closing is no longer available for moving, repairs, emergencies, or other expenses.

For example, at a $350,000 price, a 5% down payment is $17,500 and leaves $332,500 before other financed costs. A 10% down payment is $35,000 and leaves $315,000. A 20% down payment is $70,000 and leaves $280,000. These are arithmetic examples only: they do not establish that a lender will approve a particular loan or tell you what amount to put down.

Costs and Cash Beyond the Down Payment

Do not equate the down payment with the total cash required at closing. The transaction may involve lender and settlement charges, prepaid property expenses, escrow deposits, inspections, moving expenses, and other items. Which costs apply and their amounts depend on the transaction and location. Request a written estimate from the lender and compare the cash-to-close figure with your available funds. The calculator does not estimate these items, interest, monthly payments, or PMI premiums.

A common misconception is that a 20% down payment always eliminates every additional cost, or that putting down less than 20% makes a conventional mortgage impossible. Neither conclusion follows from this calculator. PMI and down payment rules are loan-specific, and other costs can remain even when the down payment is 20% or more.

How to Use the Estimate

1. Enter the home’s purchase price in dollars.
2. Enter the dollar amount you are examining as the down payment.
3. Read the percentage to understand the contribution relative to price, and the loan amount to see the simple purchase-price balance.
4. Ask the lender for the applicable minimum contribution, allowed sources of funds, PMI terms if relevant, estimated closing costs, and the complete cash-to-close figure.

Use the same price basis for comparisons. If the offer price changes, update the input. The calculation also assumes all of the entered down payment goes toward the price; it cannot account for credits, deposits, seller contributions, or other adjustments. Rounding the displayed percentage to two decimal places can create a tiny difference from calculations using the unrounded ratio.

Frequently Asked Questions

What is the minimum down payment for a conventional loan?
There is no one minimum for all conventional loans. Some programs allow a smaller down payment for eligible borrowers, while other loan types or circumstances can require more. Ask the lender for the requirements of the particular program and transaction.

Do I need 20% down for a conventional mortgage?
Not in every case. A down payment below 20% may be allowed, but can involve PMI or other program conditions. Confirm the specific rules and costs with the lender rather than treating 20% as either a universal minimum or a universal cutoff.

Does this calculator tell me whether I qualify?
No. It calculates a percentage and a simple loan balance from the price and down payment you enter. It does not assess credit, income, debts, assets, property requirements, lender conditions, or approval.

Is the down payment the same as cash to close?
No. Cash to close can include the down payment plus closing costs, prepaid expenses, escrow deposits, and adjustments. The lender’s transaction estimate is needed to understand the full amount.

Can gift money be used for a conventional loan down payment?
Possibly, depending on the loan program and the circumstances. Requirements can govern eligible donors, documentation, and the amount allowed. Ask the lender before relying on gifted funds.

This result is an estimate, and the lender’s disclosure gives the exact figures.

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in price | Home purchase price | $ | 350000 | 1 | 100000000
in down | Down payment | $ | 70000 | 0 | 100000000
out pct | Down payment percentage | % | 100 * down / price | 2
out loan | Estimated loan amount | $ | price - down | 2