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Learning CenterOn a $300,000 home, the down payment can be $0 with eligible VA or USDA financing, $9,000 at 3% conventional, $10,500 at 3.5% FHA, or $60,000 at 20%. Closing costs are separate—often 2–5% of the loan—but seller credits and down payment assistance can cover much of them.
Last updated 2026-10-15 · Reviewed by Evan Cardenas, NMLS #1463065 · Licensed in AZ, CA, CO
Here is what common down payment levels look like on a $300,000 purchase price. The loan amount is what you borrow; mortgage insurance and closing costs are separate.
| Down payment | Typical program | Cash for down payment | Base loan amount |
|---|---|---|---|
| 0% | VA (eligible veterans/service members) or USDA (eligible areas and incomes) | $0 | $300,000 (plus any financed funding/guarantee fee) |
| 3% | Conventional low-down-payment options, often for first-time or income-eligible buyers | $9,000 | $291,000 |
| 3.5% | FHA | $10,500 | $289,500 (plus financed upfront MIP) |
| 5% | Conventional | $15,000 | $285,000 |
| 10% | Conventional | $30,000 | $270,000 |
| 20% | Conventional (no PMI) | $60,000 | $240,000 |
Illustrative only, not a commitment to lend. Actual taxes, insurance, mortgage insurance, HOA dues, and rates vary by property, program, and borrower.
The takeaway: you do not need $60,000 to buy a $300,000 home. Most first-time buyers put down somewhere between 0% and 5%.
Yes. Closing costs are separate from the down payment and often run about 2–5% of the loan amount—roughly $6,000 to $15,000 on a $300,000 purchase before any credits. They include lender fees, appraisal, title and escrow, recording, and prepaid items like the first year of homeowners insurance and an initial tax escrow deposit.
| Local costs | Arizona has no real estate transfer tax. Recording a deed costs a flat $30 per document, which already includes the state's $2 transfer fee, and buyer and seller sign a notarized Affidavit of Property Value. Closings are handled by title and escrow companies. By custom the seller pays the owner's title policy, the buyer pays the lender's title policy and loan costs, and escrow and recording fees are split, though all of it is negotiable in the contract. |
|---|---|
| Loan limits | 2026 limits for Maricopa County: FHA $557,750 for a one-unit home ($714,000 two-unit, $863,100 three-unit, $1,072,600 four-unit), and the conforming limit is $832,750 for a one-unit home, the same in every Arizona county. Loans above the conforming limit are jumbo loans. Check current limits at https://entp.hud.gov/idapp/html/hicostlook.cfm. |
Down payment (3.5%): $10,500
Estimated closing costs: + $9,000
Seller credit: − $6,000
Estimated cash to close: about $13,500
Illustrative only, not a commitment to lend. Your Loan Estimate shows real figures.
Often, yes. A seller credit (sometimes called a concession) is money the seller agrees to put toward your closing costs and prepaid items. It is negotiated in the purchase contract. Each program caps how much the seller can contribute—typically a percentage of the price that depends on the loan type and your down payment. Seller credits generally cannot be used for the down payment itself, and they cannot exceed your actual costs.
In a slower market, asking for a credit can be worth more than a price cut: a $6,000 credit saves you $6,000 in cash today, while a $6,000 price reduction saves you only a few hundred dollars of down payment. Your agent and loan officer can help you structure the offer.
Many buyers combine a low-down-payment loan with a grant or second loan from a state or local program. Here are programs we see used in Arizona. Eligibility, income limits, and funding change, so we confirm details when you apply.
Statewide down payment and closing cost help of up to 4% as a no-interest, no-payment second mortgage that is forgiven after 5 years. You don't have to be a first-time buyer; borrower income must be $155,386 or less (as of April 6, 2026), and one borrower completes a homebuyer education course.
Program details (opens in new tab) →Down payment and closing cost assistance of 3% to 6% of the loan for homes anywhere in Maricopa County, paired with an FHA, VA, or qualifying Fannie Mae or Freddie Mac loan. It requires a 640 minimum credit score, income limits, and an 8-hour homebuyer education course; some assistance options have run out of 2026 funds, so ask which are open.
Program details (opens in new tab) →Program terms, income limits, and funding change often—confirm at the official source. Updated 2026-10-15.
See more in the Arizona guide or the first-time buyer page.
Private mortgage insurance usually applies with less than 20% down. The monthly cost depends on credit score and down payment. It can typically be removed once you reach enough equity—by request around 20% equity, and automatically at about 22% based on the original value and schedule.
FHA has an upfront premium (usually financed into the loan) plus an annual premium paid monthly. With less than 10% down, the annual MIP generally lasts for the life of the loan; many borrowers later refinance to a conventional loan to drop it.
VA loans have no monthly mortgage insurance but usually have a one-time funding fee (waived for some veterans with service-connected disability). USDA has an upfront and annual guarantee fee. A bigger down payment lowers these costs—but draining your savings to avoid PMI is not always the smart move. Compare payments in the payment calculator.
We usually show buyers two or three scenarios side by side so the tradeoff is clear. Explore buying a home or all loan programs.
$0 with eligible VA or USDA, $9,000 at 3% conventional, $10,500 at 3.5% FHA, $15,000 at 5%, $30,000 at 10%, or $60,000 at 20%. Closing costs are extra unless covered by credits or assistance.
No. 20% down avoids PMI on a conventional loan, but many buyers use 0–5% down. Mortgage insurance is the tradeoff for keeping more cash.
Usually yes, from an acceptable donor such as a family member, with a signed gift letter and documentation of the transfer. Rules vary by program.
Often about 2–5% of the loan amount—roughly $6,000 to $15,000 before seller credits or assistance. Local taxes and fees can push that up or down.
There often is, through state housing finance agencies and some cities or counties. See the program cards on this page and ask Evan which ones fit your income and price range.
Educational answers only—not a loan offer or commitment to lend. Examples are illustrative only, not a commitment to lend.
We will show you down payment, closing costs, and credits side by side for your price range. Call Evan at (480) 334-7827.