A down payment is the cash you pay upfront to purchase a home. You use a loan to pay the rest of the purchase price over time. Down payments are usually shown as a percentage of the price.

When applying for a mortgage to buy a house, the down payment is your contribution toward the purchase and represents your initial ownership stake in the home. The mortgage lender provides the rest of the money to buy the property.

Lenders require a down payment for most mortgages. However, some types of loans backed by the federal government may not require down payments. 

The minimum down payment required for a house varies depending on the type of mortgage you plan to apply for to purchase a home. 

VA and USDA loans: 0% down payment 

Guaranteed by the U.S. Department of Veterans Affairs- VA loans are for current, veteran military service members and eligible surviving spouses. 

USDA loans, backed by the U.S. Department of Agriculture's Rural Development program, also have no down payment requirement. USDA loans are for rural and suburban home buyers who meet the program's income limits and other requirements.

Conventional mortgages: As low as 3% down payment

Some conventional mortgages require as little as 3% down, provided you meet certain income limits. Conventional loans are not backed by the government, but they follow the down payment guidelines set by the government-sponsored enterprises — or GSEs — Fannie Mae and Freddie Mac.

FHA loans: As low as 3.5% down payment

FHA loans, which are backed by the Federal Housing Administration, require as little as 3.5% down if you have a credit score that's at least 580. If you have a credit score that's between 500 and 579, FHA loans require a 10% down payment.

Jumbo loans: As low as 5%-10% down payment (varies)

Jumbo loans: are home loans that fall outside of the Federal Housing Finance Agency's conforming loan limits. Because these outsized loans can't be guaranteed by the GSEs, lenders tend to ask for higher down payments to offset some of the risk.

With low- or no-down-payment loans, you pay for the guarantee through fees or mortgage insurance, depending on the program.

Benefits of a larger down payment

Saving enough money for a substantial down payment takes time, so a zero- or low-down-payment requirement may speed up your ability to buy a home. But making a larger down payment has advantages that include:

A better mortgage interest rate. Lenders may shave a few fractions of a percentage point off your interest rate if you make a larger down payment. When you borrow less of the home's price, there's less risk for lenders, and they tend to reward this with more favorable terms.

More equity in your home right away. Your home equity is your home's value minus the amount you owe on your mortgage. In other words, it's the extent to which your home is an asset rather than a debt. More equity means more wealth.

A lower monthly mortgage payment. Borrowing less of your home's price lowers your principal, which also means you'll pay less interest over the life of the loan.

Lower upfront and ongoing fees. Low- or no-down-payment government-backed mortgage programs reduce lenders' risk by guaranteeing a portion of the loans. If a borrower defaults on one of these loans, the associated government agency will reimburse the lender. To offset some of that cost, these loans can come with significant one-time costs, like the VA funding fee, or added ongoing costs like FHA mortgage insurance.