How Much Is a Down Payment on a $400k House?

The down payment on a $400,000 house can range from $12,000 to $80,000, assuming you put down at least 3% and up to 20%. Most mortgages have a minimum down payment requirement, unless financing with a VA or USDA loan, which require no money down. If eligible, you could get a conventional loan on a $400k house with as little as 3% down, or $12,000.

The size of your down payment on a $400k house depends on your budget, the lender and the loan and property type. According to a 2024 Zillow survey, close to half of mortgage buyers put less than 20% down on the home they purchased. In this guide, we’ll cover the down payment minimums on a $400,000 house, what you need to qualify and variables to consider.

What is the minimum down payment for a $400k house?

Generally, the minimum down payment on a $400,000 house can range from 0% to 10%, or up to $40,000, depending on the type of mortgage and your credit score. Many first-time home buyers put down as little as 3% ($12,000) with a conventional loan, while lower-credit borrowers with an FHA loan put as little as 3.5% down ($14,000).

When you need a bigger down payment for a $400k house

Factors like poor credit or inconsistent income could require more money down. The same is true if you’re purchasing an investment property or second home instead of a primary residence. A bigger down payment helps reduce the lender’s risk.

You may need a down payment of 10% or more on a $400k house when:

• Your credit score is between 500-579 for an FHA loan.
• Your debt-to-income ratio (DTI) is higher than 50%.
• You experienced bankruptcy or foreclosure in the last 7 years.
• You’re buying a second or vacation home or investment or rental property.
• You want to avoid PMI for a conventional loan to save money.
• You want to stop paying MIP on an FHA loan after 11 years, versus paying over the full loan term.

You can use Zillow’s Down Payment Calculator to see different down payment scenarios on a $400,000 home.

How to buy a $400k house with 0% down

VA loans and USDA loans can be used to finance a $400,000 home purchase with no down payment, as long as you meet eligibility requirements.

VA loan requirements:

• You have served or are presently serving in the U.S. military, or are an eligible surviving spouse.
• You have a Certificate of Eligibility (COE).
• You have full entitlement.
• You meet the lender’s credit requirements and other qualifying criteria.
• The property meets Department of Veterans Affairs requirements.

USDA loan requirements:

• The property is within a USDA-designated rural area.
• Your household income doesn’t exceed limits based on the median income for the area and your household size.
• You meet the lender’s credit requirements and other qualifying criteria.
• The property meets USDA requirements.

How to buy a $400k house with 3% down

Conventional loans are the most popular type of mortgage, often requiring as little as 3% down. To buy a $400k house with 3% ($12,000) down on a conventional loan, you’ll need to be an eligible first-time home buyer or co-borrowing with an eligible first-time buyer; a buyer who hasn’t owned a home in the past 3 years; or a buyer with low to moderate income for your area. Learn more about buying a home with low income.

How to buy a $400k house with 3.5% down

An FHA loan can require as little as 3.5% down. To buy a $400k house with 3.5% ($14,000) down, your credit score has to be 580 or higher. FHA loans are insured by the Federal Housing Administration, and worth exploring if you’re buying a $400k home with lower credit. 

How to buy a $400k house with 5% down

If you aren’t a first-time buyer or otherwise eligible, you’ll be required to make a minimum down payment of 5% for a conventional loan. For a $400k home, 5% is $20,000.

Whatever your down payment amount, start by getting pre-approved for a mortgage. A pre-approval shows you how much you’re eligible to borrow and at what rate, which can help you determine the size of your down payment. 

How much will my down payment affect my monthly payment on a $400k house?

The size of your down payment determines how much mortgage you’ll need to take out to buy a $400k home. The more you put down, the less mortgage you’ll need to borrow and the lower your monthly payment. Here’s an example of different monthly payments for a 30-year, fixed-rate mortgage on a $400k home.

*Assumes a 6% interest rate; your rate can vary based on down payment amount and other factors

Buying a home is a major milestone, and Zillow Home Loans* can help make the process smoother. Our loan officers are available 7 days a week to answer questions and help you plan your down payment strategy.

*Zillow Home Loans; an equal housing lender. NMLS #10287

Can I use down payment assistance on a $400k house?

Depending on your income, you may be eligible for down payment assistance (DPA) to buy a $400k, either a free grant, deferred loan or forgivable loan. DPA programs are often offered through your state’s housing finance authority, a nonprofit or other source, and can usually be put toward the down payment and closing costs.

Can I use gifted money for my down payment on a $400k house?

You can use gift money for a down payment on a $400,000 home. Generally, this can be used to pay the full down payment or a portion.

Pro tip: Make sure to have the gifted funds in your bank account at least two months prior to when you plan to apply for a mortgage, as well as documentation to show where the funds originated from. You’ll also need a gift letter from the giver.

How much should you put down on a $400k house?

For a $400,000 home, aim to save at least 3% ($12,000) and as much as 20% ($80,000). Your actual down payment amount depends on what you qualify for and your budget. If you’re able, there are a few benefits to putting down more money:

Benefits of a larger down payment

• Better interest rate: A down payment of 10% versus 5% on a $400k home may qualify you for a lower interest rate, saving you money.
• Lower monthly payments: Say you qualify for a 30-year conventional loan with 5% down at 6% interest. All else being equal, if you were to bump the down payment up to 10%, you’d cut $120 off your monthly payment.
• Less interest overall: A bigger down payment reduces the amount you’d need to borrow with the mortgage, thereby reducing interest paid. If you put 10% down on a $400k home instead of 5%, you’d save $23,167 in interest over the life of the loan.
• More equity in your new home: For a $400k home, a 10% down payment instead of 5% would set you up with $20,000 more in equity from the outset.
• Lower or no PMI: The cost of PMI is directly tied to how much money you put down. If you make a down payment of at least 20%, you won’t pay PMI at all. If your down payment is less than 20%, you’ll pay PMI, but at varying rates depending on the size of your down payment. The more you put down, the less you’ll pay.
• MIP removal: If you can put down at least 10% on an FHA loan, you won’t have to pay MIP for the life of the loan; rather, you’ll stop paying after 11 years.
• Lower funding fees: The funding fee on a VA loan with no money down would cost 2.15% of the loan amount, or $8,600 on a $400k home. If you decide to put down 5% ($20,000), the funding fee would cost 1.5% of the loan amount, or $5,700.

When putting down the minimum may be best

• You want a cash buffer: Your new $400k home may need repairs or maintenance when you move in, and the cost of moving can add up. Keeping some money aside for unexpected expenses can be a good idea.
• You prefer to invest: Putting extra money into a different investment may result in a higher return than adding more to a down payment for a $400k house. 
• You have a limited budget: Many home buyers wonder “Should I wait to buy until I have more money saved for a down payment?” The answer isn’t a one-size fits all — if making a smaller down payment on a $400k house gets you into a home for the goals you have today, that may be a worthwhile reason to put less down.
• You have high-interest debt: If you’re deciding between a larger down payment on a $400k house or paying down debt, lowering your debts may be the smarter option.

Buying a $400,000 home is an exciting milestone, but can be stressful, too. At Zillow, we want every home buyer to be able to achieve their dream of homeownership. Consider working with a Zillow partner agent who can guide you through the buying process and help you make a competitive down payment on a new $400k home.