Down payment options, explained

20% down is a habit, not a rule. Here’s how the main programs actually approach the money you bring to closing.

Conventional

Conventional loans can allow low down payments for qualified borrowers, including some first-time buyer programs with as little as 3% down. Putting less than 20% down typically means private mortgage insurance (PMI), which can usually be removed later as you build equity.

FHA

FHA-insured loans allow a minimum 3.5% down payment for borrowers who meet the credit score requirement, with a higher down payment required at lower scores. FHA loans carry mortgage insurance premiums.

VA and USDA

Eligible veterans and service members may qualify for VA financing with no down payment. USDA loans can also offer zero-down options for eligible borrowers buying in qualifying rural areas — and a lot of North Idaho and the Spokane outskirts are worth checking.

Down payment assistance and gifts

State and local assistance programs, plus gift funds from family, can help cover down payment and closing costs. Each has its own eligibility rules and repayment terms — this is where a real conversation pays off.