What should be my down payment amount?

Typically, the recommendation is to make a down payment of 20 percent of the purchase price. Some lenders will allow as little as 5 percent down and with government-backed loans, such as FHA or Department of Veterans Affairs (VA) loans, it can be less. However, be careful. Lower down payment loans often require mortgage insurance and a higher interest rate, which adds to your overall cost. It is usually a good idea to put down as much as you can, while still maintaining enough to weather potential emergencies or lower income.