10% Down Payment · Home Affordability · 2026
A 10% down payment significantly reduces your PMI cost, builds more equity from day one, and opens access to the best conventional loan pricing tiers — a meaningful step up from the 3–5% minimum.
10% Down — Key Facts
PMI at 10% down typically costs 0.3–0.6% of the loan annually — substantially lower than at 3–5% down. On a $300K loan with 10% down, that's approximately $75–$150/month. Cancels at 20% equity, approximately 4–6 years from a 10% starting point.
Programs accepting 10% down: Standard conventional, all Fannie/Freddie programs, reduced PMI tier
By Income
Assumes 7.0% rate, typical debts per income level, 1.1% property tax, $150/mo insurance, 30-year term.
| Annual Income | Down Payment | Max Home Price | Monthly PITI | PMI? |
|---|---|---|---|---|
| $50,000 | $5,000 | $129,000 | $1,165/mo | Yes |
| $60,000 | $6,000 | $159,000 | $1,403/mo | Yes |
| $75,000 | $7,500 | $203,000 | $1,751/mo | Yes |
| $80,000 | $8,000 | $218,000 | $1,870/mo | Yes |
| $90,000 | $9,000 | $247,000 | $2,099/mo | Yes |
| $100,000 | $10,000 | $277,000 | $2,336/mo | Yes |
| $125,000 | $12,500 | $350,000 | $2,913/mo | Yes |
| $150,000 | $15,000 | $424,000 | $3,499/mo | Yes |
| $200,000 | $20,000 | $572,000 | $4,669/mo | Yes |
Standard conventional, all Fannie/Freddie programs, reduced PMI tier. These programs are specifically designed to help buyers enter homeownership with less cash upfront, though each has specific requirements around credit score, income limits, and property type.
PMI at 10% down typically costs 0.3–0.6% of the loan annually — substantially lower than at 3–5% down. On a $300K loan with 10% down, that's approximately $75–$150/month. Cancels at 20% equity, approximately 4–6 years from a 10% starting point.
The right down payment depends on your market, savings rate, and risk tolerance. In appreciating markets, buying sooner with 10% down often generates more equity over 5–7 years than waiting to save more. In flat markets, a larger down payment reduces PMI drag and improves your monthly cash flow. Use the income table above to compare your specific scenario.
Ten percent down reduces PMI by 30–50%, lowers your loan balance by 5% of purchase price, and often qualifies you for better conventional pricing tiers. On a $350K purchase, the PMI savings vs. 5% down are roughly $40–$60/month, and PMI cancels 3–4 years sooner.
On a $300,000 home with 10% down ($30,000), PMI costs approximately 0.3–0.55% of the loan annually — roughly $68–$124/month. Higher credit scores (720+) get near the low end. PMI cancels when equity reaches 20%, typically in 4–6 years from a 10% starting point.
At 10% down, you start with 10% equity and need to reach 20% — a gap of 10 percentage points. Through standard amortization on a $270K loan at 7%, you reach 20% equity in approximately 4.5–6 years. Extra principal payments can accelerate this significantly.
For a $350K home with 10% down ($35,000), at 7% rate: loan = $315K, monthly PI ≈ $2,095, plus tax ($321), insurance ($150), PMI ($118) = PITI ~$2,684. Required income under 28% rule: $2,684 ÷ 0.28 × 12 = $115,029/year.
In appreciating markets (3%+ annual growth), buying at 5% down now often generates more total equity over 5 years than waiting 2 years to save the extra 5%. The PMI savings from 10% down ($40–60/month) are usually outweighed by 2 years of appreciation on a $300K+ home. However, higher PMI rates (lower credit scores) or flat markets change this calculation.