Mortgages, down payment and closing costs in the US
Loan types, PMI, the Loan Estimate and what makes up closing costs.
Applies to: United States. Reviewed 2026-09-25.
Key takeaways
- The down payment can range from 0 to 20 per cent depending on the loan type.
- With less than 20 per cent down on a conventional loan, PMI normally applies.
- Compare lenders using the Loan Estimate, due within three business days of application.
Loan types
| Loan | Down payment | Note |
|---|---|---|
| Conventional | From about 3% | PMI below 20% |
| FHA | From 3.5% | Mortgage insurance premium |
| VA | 0% | For veterans and service members |
PMI protects the lender, not you. On conventional loans you can ask to cancel it when the balance reaches 80 per cent of the original value, and it normally ends automatically at 78 per cent.
Loan Estimate and Closing Disclosure
The lender must give you a Loan Estimate within three business days of application and a Closing Disclosure at least three business days before closing. Compare the two documents line by line.
Closing costs
- Lender fees and any discount points.
- Appraisal, inspection and survey.
- Title search and title insurance.
- Recording fees and transfer taxes, which vary by state and county.
- Prepaid amounts into escrow for property tax and insurance.
Questions to ask
- Fixed or adjustable rate, and how long is the rate lock?
- What do discount points cost, and do they pay off for me?
Red flags
- Large differences between the Loan Estimate and Closing Disclosure without explanation.
Sources
- What is a Loan Estimate? (Consumer Financial Protection Bureau)
- Closing Disclosure explainer (Consumer Financial Protection Bureau)
- What is private mortgage insurance? (Consumer Financial Protection Bureau)
- FHA loans for home buyers (U.S. Department of Housing and Urban Development)
- VA home loans (U.S. Department of Veterans Affairs)