The down payment on a $600,000 house typically ranges from $30,000 to $180,000, depending on the loan type and your lender's requirements
The amount you put down is expressed as a percentage of the home's price. A 5% down payment on a $600,000 house is $30,000. A 20% down payment is $120,000. Most lenders will accept anywhere from 3% to 20% down, though some programs go lower and some require higher.
The percentage you choose affects two things: how much you borrow and whether you'll pay mortgage insurance. A smaller down payment means a larger loan and almost always means paying private mortgage insurance (PMI) — an extra monthly cost that protects the lender if you stop paying. A larger down payment means a smaller loan, lower monthly payments, and no PMI.
Your actual options depend on the loan type you're using. Conventional loans, FHA loans, and VA loans each have different rules about what down payments they accept.
Key Takeaways
- Conventional loans typically require 3% to 20% down; FHA loans require 3.5% down; VA loans require 0% down if you're a may have access to veteran.
- Down payments below 20% trigger PMI, which adds $200 to $400+ per month to your mortgage payment on a $600,000 house.
- Your down payment reduces the loan amount dollar-for-dollar, so putting down $60,000 instead of $30,000 cuts your borrowed amount by $30,000.
- Lenders verify down payment funds come from your own savings or a gift; they will not accept borrowed money as your down payment.
How down payment percentage works
The down payment is simply a percentage of the purchase price. On a $600,000 house, here's what common percentages look like:
| Down Payment % | Dollar Amount | Loan Amount |
|---|---|---|
| 3% | $18,000 | $582,000 |
| 5% | $30,000 | $570,000 |
| 10% | $60,000 | $540,000 |
| 15% | $90,000 | $510,000 |
| 20% | $120,000 | $480,000 |
The loan amount is what you actually borrow and pay back over 15, 20, or 30 years. The down payment is what you pay upfront and never borrow. This is why a larger down payment reduces your monthly payment — you're borrowing less money.
Down payment requirements by loan type
Conventional loans are mortgages not backed by the federal government. Most conventional lenders accept 3% down on a $600,000 house ($18,000), though some require 5% or more. If you put down less than 20%, you'll pay PMI.
FHA loans are backed by the Federal Housing Administration and are designed for buyers with lower down payments or credit scores. FHA requires 3.5% down on a $600,000 house ($21,000). You'll pay mortgage insurance no matter what percentage you put down — it's built into the loan structure. FHA mortgage insurance is typically higher than PMI on a conventional loan.
VA loans are for active-duty military, veterans, and some surviving spouses. VA loans require 0% down — you can buy a $600,000 house without a down payment if you're a may have access to veteran. You won't pay PMI, though you will pay a VA funding fee (usually 1.5% to 3.6% of the loan amount, which can be rolled into the loan).
USDA loans are for rural properties and also require 0% down if you meet income and location requirements. Like VA loans, they have a funding fee instead of PMI.
What private mortgage insurance costs
If your down payment is less than 20%, your lender will require PMI. On a $600,000 house with a $30,000 down payment (5%), your loan amount is $570,000. PMI typically costs between 0.3% and 1.5% of the loan amount per year, depending on your credit score, the loan type, and how much you're putting down.
At 0.5% annually (a middle estimate), PMI on a $570,000 loan would be about $2,850 per year, or roughly $240 per month. At 1%, it would be about $480 per month. This is added to your regular mortgage payment and continues until you've paid down the loan to 80% of the home's original value — which takes years on a $600,000 purchase.
This is why the difference between a 5% down payment and a 20% down payment matters: you save $120,000 upfront but pay hundreds of dollars extra every month for years. The math of whether to put down more depends on your savings, your interest rate, and how long you plan to stay in the house.
How lenders verify your down payment funds
Your lender will ask for bank statements, investment account statements, or other proof that the down payment money is yours. They're checking two things: that you actually have the money, and that you didn't borrow it.
Down payment gifts from family members are allowed by most lenders, but the gift must be documented in writing and the giver must sign a statement saying it's a gift, not a loan you'll repay. The lender wants to know your actual debt obligations — if you borrowed the down payment, that's debt that affects your ability to pay the mortgage.
Lenders typically want to see 2 months of bank statements showing the funds have been in your account. If you received a large deposit recently, they may ask where it came from. This is standard practice and not a sign of a problem — they're just verifying the money is real.
Down payment assistance programs
Some employers, nonprofits, and state programs offer down payment help for first-time homebuyers or buyers in certain professions. These programs vary widely by location and employer. Some provide grants (money you don't repay), some provide forgivable loans (loans that disappear if you stay in the house for a set period), and some provide below-market loans.
If you work for a large employer, a hospital, a school district, or a government agency, ask your HR department whether a down payment program exists. Your real estate agent or mortgage lender may also know about local programs. These are worth researching because they can reduce the amount you need to save.
Closing costs are separate from down payment
The down payment is not the same as closing costs. Closing costs are fees for the loan itself — appraisal, title search, underwriting, attorney fees, and other services. On a $600,000 house, closing costs typically run 2% to 5% of the purchase price, or $12,000 to $30,000.
You need to save for both. If you're putting 5% down ($30,000) and closing costs are 3% ($18,000), you need about $48,000 in cash before you buy. Some lenders allow you to roll closing costs into the loan, but that increases your monthly payment. Some sellers will cover part of your closing costs as part of the negotiation, which reduces what you need to bring.
Frequently Asked Questions
Can I borrow my down payment from someone?
No. Lenders will not accept borrowed money as your down payment because it increases your debt. A gift from a family member is allowed if documented in writing, but a loan is not. If you borrow from a family member, the lender will see it as a debt you owe and factor it into your debt-to-income ratio.
What happens if I put down less than 3%?
Most conventional lenders require at least 3% down. FHA allows 3.5% down. If you have less saved, a VA or USDA loan (if you're may be able to access) requires 0% down. Some lenders offer 1% or 2% down programs, but they're less common and usually have higher interest rates or PMI costs.
Does a bigger down payment lower my interest rate?
Usually yes, but not always by much. A larger down payment shows the lender you're a lower-risk borrower, which can earn you a slightly lower interest rate. The difference is typically 0.25% to 0.5%. Your credit score, income, and the current market matter more than down payment size.
When does PMI go away?
PMI drops automatically once you've paid the loan down to 80% of the home's original purchase price. On a $600,000 house, that's when your loan balance reaches $480,000. Depending on your interest rate and loan term, this can take 5 to 10 years. You can also request PMI removal earlier if your home has appreciated significantly and you've built equity faster.
Is it better to put down 5% or 20%?
It depends on your situation. A 5% down payment ($30,000) lets you buy sooner if you don't have $120,000 saved, but you'll pay PMI for years. A 20% down payment ($120,000) costs more upfront but saves you hundreds monthly and avoids PMI entirely. If you have the money and plan to stay in the house long-term, 20% usually makes financial sense. If you're saving to buy soon, 5% or 10% may be the right choice.