The Down Payment Truth
How much you actually need, where the money's allowed to come from, and how Louisiana assistance stacks on top.
The real minimums
| Loan type | Minimum down | On a $250,000 home | Good to know |
|---|---|---|---|
| Conventional | 3% | $7,500 | For qualified buyers; mortgage insurance drops off once you have enough equity |
| FHA | 3.5% | $8,750 | Friendlier on credit; CAFA Platinum pairs with FHA up to $472,030 |
| VA | 0% | $0 | For eligible veterans, service members & some surviving spouses |
| USDA | 0% | $0 | For eligible rural areas — and big stretches of Louisiana qualify |
Where the money can come from
Underwriters care that funds are documented, not that you saved every dime yourself. Legitimate sources include:
- Your savings — the classic, seasoned in your account.
- Gift funds — family can gift some or all of your down payment on most loan types, with a simple gift letter.
- Down payment assistance — programs like CAFA's can cover down payment, closing costs, prepaids, and even mortgage insurance costs.
- Retirement funds — some accounts allow first-time-buyer withdrawals or loans (talk to a tax professional about tradeoffs).
Don't forget: down payment ≠ cash to close
Your cash to close is down payment plus closing costs (typically 2–4%) plus prepaid taxes and insurance. This is where buyers get surprised — and where assistance that covers closing costs, not just down payment, earns its keep. The calculator shows the whole picture with an assistance slider.
Is a bigger down payment better?
Bigger down = smaller loan, smaller payment, and at 20%+ no mortgage insurance. But draining every dollar to hit a bigger number can leave you house-poor the first time the water heater quits. Many first-time buyers do better putting less down and keeping a real emergency fund. It's a strategy conversation, not a virtue contest.
Ready to find out your payment?
No pressure, no jargon, no commitment — just a real answer from a real person in Prairieville.