How Much Do I Need for a Down Payment?

One of the first questions Portland homebuyers ask is: “How much do I really need for a down payment?” The answer depends on your loan type, financial situation, and long-term goals.

Traditional 20% Down Payment
For years, buyers believed they had to put 20% down to buy a home. While this is still the gold standard for avoiding private mortgage insurance (PMI) and lowering monthly payments, it isn’t required for most loans. For example, on a $500,000 Portland home, 20% would equal $100,000—something not every buyer has available.

Low Down Payment Loan Options

• Conventional Loans: Some programs allow as little as 3–5% down.

• FHA Loans: Require just 3.5% down, though mortgage insurance applies.

• VA and USDA Loans: Eligible veterans and rural buyers may qualify for zero down.

So What? Why It Matters in Portland
The size of your down payment impacts your monthly budget, your interest rate, and how competitive you are in today’s Portland real estate market. A larger down payment can strengthen your offer, especially in multiple-offer situations. On the other hand, a smaller down payment can help you buy sooner instead of waiting years to save.

The Bottom Line
There’s no one-size-fits-all answer. Some Portland buyers win with a 3–5% down payment, while others choose 20% for long-term savings. What matters is finding the balance that fits your financial goals and positions you to compete in our local market.

If you’re considering buying, I can connect you with trusted local lenders who will walk you through your best options and create a plan tailored to your needs.

Lisa Mehlhoff Homes – Portland Realtor