What is the typical range for a down payment on a conventional loan?

The typical range for a down payment on a conventional loan is commonly between 3% to 20%. This range reflects the flexibility and varying requirements of conventional loans. While some lenders may allow as low as a 3% down payment, particularly for first-time homebuyers or certain loan programs, the standard expectation often sits around 10% to 20% to avoid private mortgage insurance (PMI).

The lower percentage can make homeownership accessible for many buyers, while the upper end generally aligns with lender preferences for risk management. A down payment of 20% not only eliminates PMI but also may provide buyers with favorable loan terms and interest rates. This payment structure is popular in the conventional loan market, as it offers options tailored to individual financial situations.

Other ranges present in the choices do not accurately represent the typical requirements seen across most lender offerings, making the 3% to 20% range the most valid and widely applicable for conventional loans.