Down Payment Rates
20% Down Mortgage Rates - Live Wholesale Pricing
20% down means no mortgage insurance on Conventional loans (LTV at or below 80%). This is the cheapest down payment bucket from a monthly-payment perspective.
Conventional Loan Facts
- Down payment as low as 3% for first-time homebuyers, 5% for others
- Down payment assistance programs available to fully cover the 3% down payment
- Private Mortgage Insurance (PMI) required below 80% LTV - automatically removed at 78%
- Maximum DTI typically 45%, up to 50% with strong compensating factors
- Minimum credit score generally 620; best rates at 740+
- Available for primary residence, second home, or investment property
- No upfront mortgage insurance premium - only monthly PMI if applicable
Down Payment by Home Price
20% down at common purchase prices:
| Home price | Down payment | Loan amount |
|---|---|---|
| $300,000 | $60,000 | $240,000 |
| $400,000 | $80,000 | $320,000 |
| $500,000 | $100,000 | $400,000 |
| $600,000 | $120,000 | $480,000 |
| $750,000 | $150,000 | $600,000 |
Frequently Asked Questions
Can I buy a house with 20% down?+
Yes. 20% down is the most flexible bucket - no mortgage insurance required on Conventional loans, best pricing on all programs.
Is 20% down enough to avoid mortgage insurance?+
Yes - 20% down (80% LTV) is the threshold to avoid Conventional mortgage insurance. 20% gives you a margin of 0% below that line.
What does 20% down on a $400,000 house look like?+
Down payment: $80,000. Loan amount: $320,000. LTV: 80%. The pricer above is preset to this scenario - see live rates in seconds.
Will my rate be higher with 20% down vs 20% down?+
No - 20% down is at or above the 80% LTV bucket. Conventional risk-based pricing adjustments improve at this LTV; rates are as good as it gets.
Is FHA or Conventional better at 20% down?+
Conventional - no MI at 20%+ down. FHA is not competitive at this down payment level.
Is the $2,000 Best Price Guarantee available at 20% down?+
Yes. The Loan Factory $2,000 Best Price Guarantee applies to qualifying fixed-rate Conventional, FHA, and VA loans of $200,000+ regardless of down payment.
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