Yes, you can buy a house with 10 percent down. It’s one of the most common down payment levels for conventional, FHA, and jumbo mortgages. On a $400,000 home, that’s $40,000 at the table instead of $80,000, leaving cash on hand for closing costs, repairs, and reserves. The tradeoff is private mortgage insurance and a few extra rules to navigate, and the total cost depends on which loan type you choose, your credit profile, and whether you use a piggyback structure to avoid the insurance.
Loan Types That Allow 10 Percent Down
Conventional Loans
Conventional loans are the default option at this down payment level. Fannie Mae and Freddie Mac allow down payments as low as 3% on a primary residence, so 10% clears the bar easily.1Fannie Mae. What You Need To Know About Down Payments For 2026, the loan must stay at or below the conforming limit of $832,750 in most counties, or up to $1,249,125 in designated high-cost areas.2Federal Housing Finance Agency. FHFA Announces Conforming Loan Limit Values for 2026 With 10% down, your loan-to-value ratio is 90%, and the lender requires private mortgage insurance until you build enough equity. PMI at 10% down costs less than at 3% or 5% down because the lender’s risk is lower, and credit scores of 740 or above tend to unlock the best pricing on both the rate and the insurance premium.
FHA Loans
FHA loans are insured by the Federal Housing Administration and designed for borrowers who may not qualify for conventional financing. The minimum down payment is 3.5% for borrowers with credit scores of 580 or higher. Borrowers with scores between 500 and 579 are capped at a 90% loan-to-value ratio, meaning 10% down is required.3U.S. Department of Housing and Urban Development. Does FHA Require a Minimum Credit Score and How Is It Determined
Even borrowers with stronger scores sometimes choose 10% down on an FHA loan because it changes the insurance math. FHA charges an upfront premium of 1.75% of the loan amount (usually rolled into the balance) plus an annual premium of about 0.50% for a 30-year loan at or below 90% LTV. On a loan with at least 10% down, that annual premium drops off after 11 years. Put down anything less, and it stays for the life of the loan. That cutoff is one of the strongest financial arguments for 10% down on FHA.
Jumbo Loans
When the loan amount exceeds the 2026 conforming limit of $832,750, you’re in jumbo territory.2Federal Housing Finance Agency. FHFA Announces Conforming Loan Limit Values for 2026 Jumbo loans are funded by private lenders who set their own rules. Many require at least 10% down; some want 15% or 20% depending on loan size and your financial profile. Because these loans can’t be sold to Fannie Mae or Freddie Mac, lenders typically expect credit scores of 700 or above, significant cash reserves after closing, and thorough asset documentation.
What PMI Will Cost and When It Ends
On a conventional loan, putting less than 20% down triggers private mortgage insurance under the Homeowners Protection Act.4GovInfo. 12 USC 4901 – Definitions PMI protects the lender if you default; you pay the premiums. Annual PMI at 10% down typically runs 0.3% to 1.0% of the loan balance, depending heavily on credit score. On a $360,000 loan, that’s roughly $90 to $300 per month.
Federal law gives you two paths to end it. You can submit a written request once your mortgage balance reaches 80% of the home’s original value, as long as your payment history is good and the property hasn’t lost value.4GovInfo. 12 USC 4901 – Definitions The lender must also cancel PMI automatically when the scheduled balance drops to 78% of the original value, provided you’re current on payments.5National Credit Union Administration. Homeowners Protection Act PMI Cancellation Act Starting at 90% LTV, reaching the 80% request threshold takes roughly seven to ten years on a standard 30-year mortgage. Extra principal payments speed it up.
These rules apply only to conventional loans. FHA mortgage insurance follows its own schedule and cannot be cancelled by request based on the balance. With 10% down on FHA, the annual premium runs 11 years and ends. With less than 10% down, it runs the full loan term.
The 80/10/10 Piggyback Alternative
If you want to skip PMI entirely, the 80/10/10 piggyback is the classic workaround. Instead of one mortgage at 90% of the home’s value, you take out two loans: a first mortgage for 80% and a second mortgage (usually a home equity loan or line of credit) for 10%. Your 10% cash covers the rest. Because the primary mortgage sits at 80% LTV, no PMI is required.
The catch is that second loan. It carries a higher rate than the primary mortgage and adds a second monthly payment. Whether the piggyback beats a single 90% LTV loan with PMI depends on the rate spread and how long you stay in the home. For borrowers who plan to sell or refinance within a few years, piggybacks often win because PMI premiums over that stretch would exceed the extra interest. For long-term owners, a single conventional loan with PMI that eventually falls off may cost less overall.
Credit, Income, and Documentation
Ten percent down doesn’t help if your credit and income don’t qualify. Most conventional lenders want a minimum credit score of 620, and 740 or above earns the best pricing. FHA accepts scores down to 500, but as noted, anything below 580 requires 10% down.3U.S. Department of Housing and Urban Development. Does FHA Require a Minimum Credit Score and How Is It Determined
On the income side, lenders compare your total monthly debt to your gross monthly income. The Consumer Financial Protection Bureau replaced the old 43% qualified mortgage cap with a price-based test in 2021: a loan qualifies as a General QM as long as its APR doesn’t exceed the average prime offer rate by more than a specified margin (2.25 percentage points for most first-lien loans).6Consumer Financial Protection Bureau. Qualified Mortgage Definition Under the Truth in Lending Act Regulation Z General QM Loan Definition In practice, most lenders still treat 43% to 50% debt-to-income as the range where approvals get harder.
Expect to provide at least two years of W-2 or 1099 income statements and 60 days of consecutive bank statements documenting where your down payment came from.
Seasoning Your Down Payment
Lenders want your 10% to have been sitting in your account, not freshly deposited from an unknown source. This is called seasoning. Most lenders require the funds to have been in an established account for at least 60 days before application. Any large deposit inside that window will draw questions, and you’ll need to document the source. The point is to confirm the down payment isn’t borrowed money in disguise.
Using Gift Funds
For a single-unit primary residence, Fannie Mae allows your entire down payment to come from gift funds when the LTV is above 80%.7Fannie Mae. Personal Gifts A family member could hand you the full 10% without you contributing a dollar of your own savings toward the down payment. For two-to-four-unit properties or second homes above 80% LTV, you must put in at least 5% from your own funds before gift money fills the gap.
Acceptable donors include relatives by blood, marriage, or adoption, along with domestic partners and individuals with a long-standing familial relationship. The donor cannot be the seller, builder, real estate agent, or anyone with a financial interest in the transaction. Every gift needs a signed letter stating the dollar amount, the donor’s relationship to you, and an explicit statement that no repayment is expected.7Fannie Mae. Personal Gifts The lender will verify the transfer through bank statements or a copy of the donor’s check. FHA follows similar rules but also permits gifts from employers, labor unions, and charitable organizations. Regardless of loan type, gift funds cannot come from a personal loan or credit card.
The Cash You Need Beyond the Down Payment
The down payment isn’t the only money you bring to closing. Closing costs for the appraisal, title search, recording fees, and prepaid taxes and insurance typically run 2% to 5% of the loan amount.8Fannie Mae. Closing Costs Calculator On a $400,000 purchase with 10% down, that’s roughly $7,200 to $18,000 on top of the $40,000 down payment. Buyers who drain their savings for the down payment alone often get blindsided by this second bill.
Seller concessions can offset it. On a conventional loan at 90% LTV, the seller can contribute up to 6% of the lesser of the sale price or appraised value toward your closing costs.9Fannie Mae. Interested Party Contributions IPCs On a $400,000 home, that’s up to $24,000, which would more than cover typical closing costs. Concessions can’t be applied to the down payment itself, and any amount above actual closing costs is treated as a price reduction. In a buyer-friendly market, negotiating seller-paid closing costs is one of the most effective ways to cut the cash you need at the table.
The Appraisal Risk at 90 Percent LTV
During underwriting, the lender orders a property appraisal to confirm the home’s value supports the purchase price at 90% LTV. If the appraisal comes in below the agreed price, you have a choice: negotiate the price down, increase your down payment to close the gap, or walk away (assuming your contract includes an appraisal contingency). Buyers at 10% down feel this more than 20%-down buyers because a low appraisal eats into already-thin equity. Building appraisal protection into your purchase offer is worth the paperwork.