Minimum down payments vary by loan type: Conventional (3-5%), FHA (3.5%), VA (0%), USDA (0%). Putting 20% down avoids PMI on conventional loans. Your specific amount depends on the purchase price and loan program.
Yes, most loan programs allow gift funds from family members. FHA and VA loans allow 100% of the down payment to be gift funds. Conventional loans may require some of your own funds depending on the down payment percentage. A gift letter is required.
PMI (Private Mortgage Insurance) is required on conventional loans with less than 20% down. It typically costs 0.5-1% of the loan amount annually. You can avoid PMI by putting 20% down, choosing a VA loan (no PMI), or using a piggyback loan structure.
Closing costs typically range from 2-5% of the purchase price and include lender fees, title insurance, appraisal, attorney fees, and prepaid items. On a $400,000 home, expect $8,000-$20,000 in closing costs in addition to your down payment.