Can I Buy a House With 15% Down? Mortgage Options and Requirements

Kevin
Posted on November 1, 2026

Yes, many buyers can purchase a home with a 15% down payment. A 15% down payment sits between low-down-payment options like 3% to 5% and larger conventional down payments such as 20%. It can be enough for a wide range of mortgage programs, but the exact loan options, monthly payment, and cash needed to close will depend on your credit, income, debt levels, and the type of property you want to buy.

For some borrowers, 15% down can be a practical middle ground. It may reduce the loan amount and monthly payment compared with smaller down payments, while still leaving more savings available than a 20% down purchase. It also may affect whether mortgage insurance is required, how much cash is needed at closing, and which lenders are willing to approve the loan.

Quick Answer

A 15% down payment is often enough to buy a house with a conventional mortgage, and it may also work in some other loan situations depending on the program and property type. In many cases, it can lower your loan balance and monthly payment compared with a smaller down payment, but it does not always eliminate mortgage insurance. Whether you can buy with 15% down depends on factors such as credit score, debt-to-income ratio, income stability, reserves, and the home’s condition. Borrowers may want to compare how 15% down affects both monthly costs and total cash needed at closing.

What 15% Down Means

A down payment is the portion of the home price you pay upfront with your own funds. If you buy a $300,000 house with 15% down, your down payment would be $45,000. The remaining $255,000 would be financed through a mortgage, before closing costs and other fees are added.

Many buyers focus only on the down payment percentage, but the real question is how that number affects the entire purchase. A 15% down payment can influence:

The size of the mortgage loan
The monthly principal and interest payment
Whether private mortgage insurance is required
How much cash you need at closing
The lender’s view of your overall risk profile

Because 15% is below 20%, it often still falls into the category of a lower down payment than a traditional 20% purchase. That does not mean it is a problem. It simply means you may need to account for mortgage insurance or other lender requirements depending on the program.

How a 15% Down Payment Works

When you buy a home with 15% down, the lender finances the remaining 85%. The mortgage payment is based on the loan amount, interest rate, and loan term. If the lender requires mortgage insurance, that cost is also added to your monthly payment or paid upfront, depending on the loan type.

Here is a simplified example:

Home price: $400,000
15% down payment: $60,000
Loan amount: $340,000

If you instead bought the same home with 5% down, your loan would be larger and your monthly payment would usually be higher. That is one reason some buyers prefer to put more money down when they can comfortably do so.

It is also important to separate the down payment from closing costs. Closing costs are the fees and prepaid items due at settlement, such as lender charges, title charges, homeowners insurance, and property tax prepaids. A buyer with 15% down still needs to budget for these additional costs unless they are covered by seller concessions or lender credits.

Can I Buy a House With 15% Down on a Conventional Loan?

In many cases, yes. A conventional loan is one of the most common options for buyers putting 15% down. Conventional loans are not insured or guaranteed by the federal government. Instead, they follow guidelines from Fannie Mae and Freddie Mac, along with each lender’s own rules.

With 15% down, many buyers may qualify for a conventional mortgage if they also meet income, credit, and debt requirements. One major issue to watch is private mortgage insurance, or PMI. PMI is a monthly insurance premium that protects the lender if the borrower stops making payments. It is commonly required when the down payment is under 20%.

Some key points about conventional financing with 15% down:

PMI is often required
Credit score standards may be stricter than government-backed loans
Debt-to-income ratio matters
The home must meet standard appraisal and condition requirements
Borrowers may be able to remove PMI later once enough equity is built

Typical Conventional Loan Considerations

Factor	What It Means	Why It Matters With 15% Down
Credit score	A number that reflects your credit history	Higher scores may improve approval chances and pricing
Debt-to-income ratio	Your monthly debt payments compared with gross income	Shows whether the payment fits your budget
Mortgage insurance	Monthly or upfront insurance on higher-risk loans	Often required with less than 20% down
Cash reserves	Money left after closing	Some lenders like to see savings beyond the down payment
Property type	Single-family home, condo, townhouse, etc.	Rules can vary by property type and occupancy

How 15% Down Compares With Other Down Payment Amounts

It helps to compare 15% down with other common options. Each one changes the loan size, monthly payment, and upfront cash required.

Down Payment	Example on $300,000 Home	Loan Amount	General Impact
3%	$9,000	$291,000	Lowest upfront cost, usually higher monthly costs and PMI
5%	$15,000	$285,000	Still low upfront cost, PMI likely applies
10%	$30,000	$270,000	More equity at closing, still usually requires PMI
15%	$45,000	$255,000	Moderate upfront cost, lower loan balance, PMI often still required
20%	$60,000	$240,000	Often avoids PMI on conventional loans

These comparisons show why 15% down can be appealing. It may create a more manageable mortgage than smaller down payment options without requiring the same cash commitment as 20% down.

Mortgage Insurance and 15% Down

With a conventional loan, 15% down often means PMI is still required. PMI is usually paid monthly, although some loans allow a one-time upfront premium or a combination of both. The cost depends on your credit score, loan size, and other factors.

PMI is not permanent in many cases. On conventional loans, it can usually be removed after the loan balance reaches 80% of the home’s original value, assuming you meet the lender’s requirements and have a good payment history. In some cases, it may drop off automatically later based on the loan’s amortization schedule.

That said, the monthly payment with PMI should be reviewed carefully. A buyer with 15% down may still have a comfortable monthly cost if the loan terms are favorable. Another borrower may find that the PMI premium makes the payment less attractive than expected. Comparing total monthly payment, not just principal and interest, gives a more accurate picture.

Requirements That Can Affect Approval

A 15% down payment is only one part of the mortgage review. Lenders also consider the following:

Credit Score

Your credit score helps lenders gauge how reliably you have handled debt in the past. Higher scores may open more loan options and better pricing. Lower scores do not always prevent approval, but they can make qualifying harder or increase the cost of the loan.

Debt-to-Income Ratio

Debt-to-income ratio, or DTI, compares your monthly debt obligations to your gross monthly income. Gross income means income before taxes and deductions. A high DTI can signal that a borrower may struggle with additional monthly payments. A lower DTI can make approval more likely.

Income Stability

Lenders generally want to see steady, verifiable income. That may include wages, salary, self-employment income, retirement income, or other acceptable sources depending on the loan program.

Asset Reserves

Reserves are funds you still have after closing. They can show that you are better prepared for a job change, unexpected repair, or temporary income disruption. Some lenders consider reserves especially important when the down payment is below 20%.

Property Condition and Type

The home itself must usually meet appraisal standards. Certain property types, such as condominiums or multi-unit homes, may have different underwriting rules. Homes needing major repairs can present additional challenges for financing.

How Much House Can You Buy With 15% Down?

The amount you can buy depends on your budget, not just your savings. Two buyers with the same 15% down payment may qualify for very different homes if their income, debts, and credit profiles differ.

A helpful way to think about it is this:

More income can support a larger mortgage payment
More monthly debt can reduce the amount you qualify for
Higher credit scores may improve loan pricing
Higher property taxes and insurance can raise the total housing cost

For example, a buyer purchasing a home in an area with high property taxes and insurance may qualify for less house than a buyer with the same income in a lower-cost area. The down payment percentage alone does not determine the full picture.

15% Down Payment Example

The table below shows a simplified example of how 15% down changes the numbers. This is only an illustration, not a loan quote.

Item	Example Amount
Home price	$350,000
15% down payment	$52,500
Mortgage amount	$297,500
Estimated closing costs	Varies by location and loan terms
Monthly PMI	May apply on many conventional loans

If the same buyer put 5% down instead, the down payment would be lower, but the mortgage amount and likely the monthly payment would be higher. If the buyer put 20% down, the mortgage would be smaller and PMI might be avoided on a conventional loan, but more cash would be needed upfront.

Advantages of Buying With 15% Down

A 15% down payment can offer a balance between preserving cash and reducing the loan amount. Some potential advantages include:

Lower loan balance than smaller down payment options
Smaller monthly payment than a 3% to 5% down purchase, all else equal
Less upfront cash than a 20% down payment
More flexibility for buyers who want to keep savings for repairs, furniture, or emergencies
Potentially stronger offer in some markets compared with very low down payment financing, depending on the rest of the file

For many households, the middle ground is the practical advantage. A 15% down payment may allow homeownership without draining all available savings.

Disadvantages of Buying With 15% Down

There are also tradeoffs to consider.

PMI may still apply on conventional loans
More cash is needed than with 3%, 5%, or 10% down
Monthly savings may be limited compared with 20% down if PMI remains in place
Less cash cushion if the down payment uses most of your savings

One common mistake is focusing on reaching a particular down payment percentage without considering the bigger financial picture. A buyer with 15% down but very little left in reserves may feel less secure than a buyer with 10% down and substantial savings remaining after closing.

Other Loan Programs and 15% Down

Not every loan program is designed around the same down payment rules. While many buyers with 15% down use conventional financing, other options may be available depending on the property and borrower profile.

FHA Loans

FHA loans are government-insured mortgages often associated with lower down payment requirements. They can be helpful for some borrowers, but a 15% down payment is more than the minimum required in many FHA scenarios. Even with a larger down payment, FHA loans have their own mortgage insurance rules and program requirements.

VA Loans

VA loans are available to eligible veterans, active-duty service members, and some surviving spouses. They can often be used with no down payment at all. A 15% down payment is not usually necessary for the standard VA structure, though some borrowers may still choose to put money down for personal reasons.

USDA Loans

USDA loans are designed for eligible rural and some suburban areas and are commonly known for no down payment requirements. A 15% down payment is generally more than required for that program, although property eligibility and income limits still matter.

Jumbo Loans

Jumbo loans exceed conforming loan limits and may have stricter underwriting standards. A 15% down payment may or may not be enough depending on the lender and the size of the loan. Some jumbo programs require more than 15% down, while others may allow it with stronger credit and reserves.

Closing Costs and Cash to Close

Many buyers estimate only the down payment and then are surprised by the amount needed at closing. Cash to close includes the down payment plus closing costs, prepaid taxes, prepaid insurance, and any other required funds not financed in the loan.

Typical closing cost items can include:

Loan origination or lender fees
Appraisal fee
Title search and title insurance
Recording fees
Attorney fees in some states
Prepaid homeowners insurance
Escrow deposits for taxes and insurance

With 15% down, the down payment itself is already substantial, so it is smart to budget carefully for these added expenses. Sellers may sometimes contribute toward closing costs within program limits, and lenders may offer credits in exchange for a different rate structure, but those options vary.

How to Know if 15% Down Is Enough for You

Whether 15% down is enough depends on both qualification and comfort. Qualification means the lender is willing to approve the mortgage. Comfort means the payment fits your budget without leaving you stretched too thin.

A buyer may be in good shape for a 15% down purchase if they have:

Stable income
Manageable monthly debts
Reasonable credit history
Savings left after closing
A home price that fits the monthly budget, including taxes and insurance

A buyer may want to pause and reassess if the 15% down payment uses nearly all available savings or if the projected monthly payment feels too tight. Homeownership costs more than the mortgage alone. Repairs, maintenance, utilities, and unexpected expenses can add up quickly.

Common Mistakes Buyers Make With a 15% Down Payment

Using All Savings for the Down Payment

One of the most common mistakes is putting everything into the down payment and leaving no reserve for emergencies. A house often brings new expenses soon after purchase, including maintenance, appliances, or utility deposits.

Forgetting About Closing Costs

Another mistake is assuming 15% down covers the entire cash requirement. Closing costs can add a meaningful amount depending on the home price and local fees.

Ignoring Mortgage Insurance

Some buyers assume 15% down means no PMI. On conventional loans, that is often not the case.

Focusing Only on the Down Payment

Approval also depends on credit, income, and debt. A large down payment does not automatically solve weak credit or a high DTI ratio.

Buying More House Than the Budget Supports

Even with a healthy down payment, a too-large mortgage can strain monthly cash flow. The loan amount should fit comfortably within the broader household budget.

15% Down vs. 20% Down

Many buyers compare 15% down with 20% down because 20% is often linked to avoiding PMI on conventional loans. The right choice depends on priorities and available funds.

Feature	15% Down	20% Down
Upfront cash needed	Lower than 20%	Higher than 15%
Loan amount	Higher than 20% down	Lower than 15% down
PMI on conventional loans	Often still required	Usually not required
Monthly payment	Often higher than 20% down	Often lower than 15% down
Cash reserves after closing	More likely to preserve savings	May reduce liquid savings more

There is no universal best choice. A buyer who wants to preserve emergency savings may prefer 15% down. Another buyer who can comfortably put 20% down may value the smaller loan and possible PMI savings. Both approaches can make sense depending on the borrower’s overall finances.

Step-by-Step Process for Buying With 15% Down

Review your budget and decide how much monthly housing cost feels manageable.
Check your credit and identify any issues that may affect approval or pricing.
Estimate your cash to close, including the down payment, closing costs, and reserves.
Compare loan options to see how 15% down changes the monthly payment and mortgage insurance.
Get preapproved so you understand the purchase price range that fits your file.
Shop for a home within that range and consider taxes, insurance, and maintenance costs.
Complete underwriting, appraisal, and final documentation.
Review closing figures before signing and make sure the final cash requirement is clear.

This process is similar to other home purchases, but the financial details become especially important when the down payment is not large enough to eliminate mortgage insurance on a conventional loan.

Frequently Asked Questions

Can I buy a house with 15% down and no mortgage insurance?

On a conventional loan, 15% down usually does not remove the need for PMI. A 20% down payment is the common threshold for avoiding PMI on conventional financing. Some other loan programs have different insurance structures, so the answer can vary by loan type.

Is 15% down enough for a first-time buyer?

Yes, it can be enough if the buyer meets the lender’s credit, income, and debt requirements. First-time buyers often use conventional loans, and 15% down is within the range that many lenders accept. The key is making sure the monthly payment and closing costs fit the budget.

What credit score do I need to buy with 15% down?

There is no single minimum for every lender. Many conventional loans prefer stronger credit profiles, while other programs may allow lower scores. A higher score can improve the chances of approval and may reduce costs.

Do I still need money for closing costs if I put 15% down?

Yes. The down payment and closing costs are separate. Closing costs can include lender fees, title charges, appraisal fees, prepaid insurance, and tax escrows. Buyers should budget for both unless another party is contributing to some of those expenses.

Is 15% down better than 10% down?

It can be, because a larger down payment reduces the loan amount and may lower the monthly payment. However, the better option depends on how much cash you want to keep in reserve. A slightly smaller down payment may be smarter if it preserves emergency savings.

Can I use gift funds for part of the 15% down payment?

Many loan programs allow gift funds from eligible family members, but the rules vary by loan type and lender. Documentation is usually required to show that the money is truly a gift and not a loan that must be repaid.

Conclusion

A 15% down payment can be enough to buy a house in many situations, especially with a conventional mortgage. It often creates a middle path between low-down-payment financing and a full 20% down purchase. That said, 15% down does not automatically eliminate mortgage insurance, and it does not replace the need to qualify based on credit, income, debt, and property requirements.

Buyers who are considering this option should look at the full picture, including the loan amount, monthly payment, closing costs, and how much savings will remain after closing. A mortgage that fits comfortably within the budget is usually more important than choosing a single down payment percentage. Comparing multiple loan scenarios can help reveal whether 15% down is the most practical path for a particular home purchase.

Your Mortgage Man