Down Payment Scenario

Can I Afford a House with 10% Down?

A 10% down payment is a great middle ground for homebuyers. It lowers your required cash to close compared to 20%, while offering better rates and lower PMI costs than a 5% down loan. See exactly how much house you can afford with a 10% down payment.

Quick insight: The sweet spot for down payments

With a 10% down payment, you finance 90% of the home's price. You'll still need Private Mortgage Insurance (PMI), but it will typically be much cheaper than with lower down payment options. Adjust the calculator below to match your income and the 10% down payment amount you have saved to see your budget.

Income & Debts

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Loan & Down Payment

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Ongoing Housing Costs

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Lending Assumptions

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Want to know more?

What Salary Do I Need for a Mortgage?

See exactly what income you need to qualify in 2026, plus how debt changes your numbers.

Affordability Estimate

You can afford a home around

$316,000

Based on your current income, debt, and housing cost assumptions.

Comfortable target$316K
Stretch maximumup to $348K

Monthly Housing Budget

$2,330

Comfortable

This appears to be within a comfortable borrowing range.

Estimated Loan Amount

$276,000

Estimated Cash Needed (Down + Closing)

$49,000

Estimates based on your inputs. Actual results may vary. Terms →

Calculation Breakdown

  • Estimated Principal & Interest$1,800
  • Estimated Property Taxes$320
  • Estimated Homeowner's Insurance$100
  • Estimated HOA$0
  • Estimated PMI$120
  • Front-End Ratio Used28.00%
  • Back-End Ratio Used34.00%

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Next steps

Calculate the exact cash needed to close on this homeValidate your decision before committing to buy

How 10% Down Affects Your Purchasing Power

Home Price10% Down PaymentLoan AmountEstimated Monthly Payment*Income Needed (28% Rule)
$300,000$30,000$270,000~$2,060/mo~$88,000/yr
$400,000$40,000$360,000~$2,750/mo~$118,000/yr
$500,000$50,000$450,000~$3,440/mo~$147,000/yr
$600,000$60,000$540,000~$4,120/mo~$177,000/yr
*Estimates based on a 6.8% interest rate, 30-year fixed loan, 1.2% property tax, $150/mo insurance, and 0.4% PMI. Your actual numbers will vary.

What to consider when putting 10% down

Reduced PMI Costs

While you still have to pay Private Mortgage Insurance, reaching the 10% down threshold often triggers lower PMI rates compared to buyers who put down 3% or 5%. This helps reduce your overall monthly mortgage payment.

Better Interest Rates

Lenders view a 10% down payment as less risky than smaller down payments. Because of this, you may be offered slightly more favorable interest rates, which can save you thousands of dollars over the life of the loan.

Faster Path to 20% Equity

By starting with 10% equity, you are halfway to the 20% mark where PMI can typically be removed. With regular payments and potential home value appreciation, you can shed this extra cost much faster.

Compare other down payment scenarios

Conventional Loan Minimums

See what happens when you put down 3%, 5%, or 10%.

The 20% Down Payment

Calculate the savings of putting 20% down to eliminate PMI.

5% Down Payment

See how much house you can afford with a smaller 5% down payment.

Frequently asked questions about 10% down payments

Is 10% a good down payment for a house?

Yes, 10% is a strong down payment for a house. While it's less than the traditional 20%, it still provides significant equity from day one, often resulting in lower interest rates and lower Private Mortgage Insurance (PMI) premiums compared to smaller down payments like 3% or 5%.

Will I have to pay PMI with a 10% down payment?

Yes, lenders typically require Private Mortgage Insurance (PMI) for down payments under 20%. However, because you're putting 10% down, your PMI costs will generally be lower than if you only put down 3% or 5%. PMI can usually be removed once you reach 20% home equity.

How much income do I need to afford a $400k house with 10% down?

To afford a $400,000 house with a 10% down payment ($40,000), your estimated monthly payment would be around $2,750 (assuming a 6.8% rate, taxes, insurance, and PMI). Using the 28% rule, you would need an annual household income of roughly $118,000 to comfortably afford this.

How does 10% down compare to 20% down?

Putting 10% down requires half the upfront cash compared to 20%, letting you buy sooner and keeping more cash for emergencies. However, a 20% down payment eliminates PMI entirely and results in a lower monthly mortgage payment because you are financing a smaller loan amount.

Estimates based on your inputs. Actual results may vary. Terms →