• Minimum down payment required for your loan type
  • Emergency funds
  • Condition of your home
  • Budget for home repairs/improvements
  • Retirement
  • Other debts

Yes, 5% is enough to put down on a house. In fact, many conventional mortgage loans have a minimum down payment requirement between 3% and 5%. And as mentioned, you may even qualify for a government-backed loan—an FHA loan, a VA loan, or a USDA loan—with a 0% down payment.

Ultimately, there is no one-size-fits-all answer to how much of a down payment you need to put down on a house. Your down payment will depend on your current financial situation and where you want to spend your money in the future.

While a 20% down payment was once thought of as the rule, it now seems more and more to be the exception. There are numerous reasons why making a 20% down payment may be impossible, even if doing so could help save costs.

However, for most, saving up to make that large 20% down payment actually costs more in time. For instance, if you are saving for a down payment and paying rent, the cost of your future home will likely continue to increase. Therefore, making a lower down payment of 5%, say, could be worth it to move into your first home more quickly and begin building invaluable equity.

It may also be wiser to pay down the balances of high-interest credit card debt, or any other debt, first rather than make a large down payment. In that case, making a 5% down payment on a house makes more than enough sense.