Quick Answer
Most first-time buyers do not need 20% down. You can buy with as little as 3% down on a conventional loan, 3.5% down on an FHA loan, and 0% down on a VA loan if you are eligible. Putting down less than 20% usually means paying private mortgage insurance (PMI) or FHA mortgage insurance, so the right amount for you balances a smaller monthly payment against the cash you keep in reserve.
The 20% down payment is the most repeated number in homebuying and the least true for most first-time buyers. It is a useful rule of thumb, not a requirement. In 2026, qualified buyers can buy with 3% down on a conventional loan, 3.5% down on an FHA loan, and no down payment at all on a VA loan. Here is how down payments actually work, which minimum fits which buyer, and how to decide what is right for you.\n\n## Do You Really Need 20% Down?\n\nNo. 20% down is what you need to avoid private mortgage insurance and to qualify for the most favorable conventional terms. It is not what you need to buy a home. Industry data consistently shows the median down payment among all homebuyers is well below 20%, and first-time buyers typically put down less than repeat buyers.\n\nIn the Las Vegas Valley, many first-time buyers purchase with 3% to 5% down, and eligible veterans buy with nothing down through the VA loan program. The belief that you must wait until you have saved 20% keeps perfectly qualified buyers on the sidelines longer than they need to be.\n\n## Down Payment Minimums by Loan Type in 2026\n\nYour minimum down payment depends on the loan program you use, not a single rule. Here are the current starting points:\n\n- Conventional loans: 3% down for many qualified buyers through low-down-payment programs\n- FHA loans: 3.5% down with a credit score of 580 or higher\n- VA loans: 0% down for eligible veterans, service members, and some surviving spouses\n- USDA loans: 0% down in eligible rural areas\n\n### Conventional 3% Down Programs\n\nThree mainstream programs let qualified buyers put down just 3%:\n\n- Fannie Mae Conventional 97 (HomeOne): 3% down, designed for first-time buyers purchasing a one-unit primary residence\n- Fannie Mae HomeReady: 3% down with an income limit, typically 80% of area median income, and flexible income sources\n- Freddie Mac Home Possible: 3% down with similar income limits and borrower-friendly features\n\nThe 2026 conforming loan limit for Clark County is $832,750 for a one-unit home, which sets the ceiling for most conventional loans in Las Vegas, Henderson, and North Las Vegas. Loans above that amount are jumbo loans with lender-set requirements.\n\n### FHA 3.5% Down\n\nFHA loans are popular with first-time buyers because of the low down payment and more flexible credit standards. With a credit score of 580 or higher, you can put down 3.5%. With a score between 500 and 579, FHA allows 10% down.\n\nThe 2026 FHA loan limit for Clark County, Nevada is $541,287 for a one-unit home. FHA loans require mortgage insurance for the life of the loan when you put down less than 10%, which is a key difference from conventional loans.\n\n### VA 0% Down\n\nFor eligible veterans and service members, the VA home loan is one of the most powerful buying tools available: no down payment, no monthly private mortgage insurance, and competitive rates. The VA home loan benefit is earned through service, so eligibility is determined by the VA, not by a lender or real estate agent.\n\nIf you are a veteran, active-duty service member, or surviving spouse, check your situation with the site's VA eligibility resource before you assume you need a down payment.\n\n## What Happens If You Put Down Less Than 20%?\n\nPutting down less than 20% does not mean you are doing something wrong. It means you will typically pay mortgage insurance, and the cost depends on the loan type:\n\n- Private mortgage insurance (PMI) on conventional loans protects the lender and is priced on your credit score, down payment, and loan amount. It commonly runs from about 0.3% to 1.5% of the loan amount per year, paid with your monthly payment. The good news: on a conventional loan you can usually request PMI removal once your loan balance reaches 80% of the home's value, and it must be removed automatically at 78%.\n- FHA mortgage insurance (MIP) has an upfront premium of 1.75% plus an annual premium. If you put down less than 10%, MIP stays for the life of the loan. Many FHA borrowers eventually refinance into a conventional loan once they have built enough equity to drop the insurance.\n\nThe trade-off is straightforward. A lower down payment means a slightly higher monthly cost for mortgage insurance, but it gets you into a home sooner and leaves more cash in your emergency fund. A larger down payment means a lower payment and no PMI, but it can take years longer to save.\n\n## How Your Down Payment Changes Your Monthly Payment\n\nYour down payment directly changes the size of your loan and therefore your monthly payment. On a $450,000 home purchase:\n\n- 3% down ($13,500) leaves a $436,500 loan\n- 5% down ($22,500) leaves a $427,500 loan\n- 10% down ($45,000) leaves a $405,000 loan\n- 20% down ($90,000) leaves a $360,000 loan and typically no PMI\n\nThe mortgage calculator shows your estimated principal and interest, and the affordability calculator helps you see what price range fits your monthly budget. For a full view that includes taxes, insurance, and HOA fees, use the true monthly payment calculator.\n\n## Down Payment Assistance in Nevada\n\nYou do not have to save the entire down payment on your own. Nevada offers several programs that can reduce what first-time buyers bring to the table:\n\n- Home Is Possible (HIP) through the Nevada Housing Division provides up to 4% to 5% of the loan amount as a grant or forgivable second mortgage for down payment and closing costs, typically forgiven after three years if you stay in the home\n- Home First through the Nevada Housing Division offers up to $15,000 in down payment assistance\n- Home At Last through the Nevada Rural Housing Authority offers down payment assistance and does not require first-time buyer status, for eligible rural areas\n- Clark County HOME offers a 0% interest deferred loan for eligible first-time buyers purchasing within Clark County\n\nProgram requirements, income limits, and funding availability change, so confirm current terms with the Nevada Housing Division or a participating lender. Our down payment assistance guide walks through the options in more detail. This site does not determine eligibility or underwrite loans.\n\n## Where Can Your Down Payment Money Come From?\n\nYour down payment does not have to come entirely from your own savings. Many buyers combine savings, a tax refund, or a bonus with a gift from family. Gift funds are allowed on most loan programs as long as the money is documented properly and the donor is an acceptable source, typically an immediate family member.\n\nThe key is that every dollar must be traceable. Lenders review your bank statements and need a gift letter for any contributed funds, so never move money around or accept a deposit without documenting it. Learn the rules in our gift funds guide.\n\n## How to Decide How Much to Put Down\n\nThere is no single correct down payment. The right number for you balances a few competing goals:\n\n- A lower monthly payment favors a larger down payment\n- Avoiding PMI generally means reaching 20% equity\n- Keeping cash reserves favors a smaller down payment so you do not drain your savings\n- Getting into the market sooner favors the lowest qualifying down payment\n\nA common first-time buyer plan is to put down 3% to 5% on a conventional or FHA loan, keep a cash reserve for closing costs and emergencies, and revisit your mortgage insurance once you build equity. The closing cost estimator helps you plan the cash you will need on top of the down payment.\n\n## Start With Your Financing Options\n\nBefore you fixate on a down payment number, get a realistic picture of your financing. The First-Time Homebuyer Masterclass covers preapproval, loan types, and the full buying process, and the Complete Las Vegas Homebuying Guide walks through every step from search to closing. For program-by-program detail, see conventional loans, FHA loans, and VA loans.\n\nFinancing questions are best directed to the site's financing and preapproval resources, where a licensed Loan Originator can review your specific situation. Preapproval with a lender will tell you the exact loan amount, rate, and monthly payment you qualify for, which is the real starting point for your down payment plan.\n\n## The Bottom Line\n\nThe 20% down payment is optional for most first-time buyers. In 2026 you can buy with 3% down on a conventional loan, 3.5% down on an FHA loan, and 0% down on a VA loan if you are eligible, and Nevada down payment assistance can lower the number further. The trade-off for a smaller down payment is usually mortgage insurance, which you can often remove or refinance away later.\n\nDecide your down payment based on your budget, your cash reserves, and your monthly payment goals, not on a rule of thumb. Then get preapproved, compare your loan options, and use the calculators on this site to see exactly how each choice changes your payment.\n\nWhen you find a home you are serious about, order a free Property DNA report to review ownership history, tax records, and comparable sales before you make an offer, and use the IDX home search to see what is currently for sale in the Las Vegas Valley.
