Yes, you can get a conventional loan with 10 percent down. It’s a common structure for buyers who want more equity than the 3% or 5% minimums allow but don’t want to tie up the cash a full 20% would require. You’ll pay private mortgage insurance until you reach 20% equity, and you’ll need to meet Fannie Mae or Freddie Mac standards for credit, income, debt, and cash reserves. The property type matters too: 10% down works for a primary home or second home, but not for an investment property.
Qualification Requirements
Credit Score
Fannie Mae removed its hard 620 minimum credit score for loans run through its Desktop Underwriter (DU) automated system, effective November 2025. DU now evaluates the whole risk profile instead of rejecting a file on score alone.1Fannie Mae. Selling Guide Announcement SEL-2025-09 Most lenders still set their own floors, though, and 620 remains the practical minimum at the majority of mortgage companies. A score in the mid-700s or above earns you better interest rates and lower PMI premiums. Below 680, both costs climb.
Debt-to-Income Ratio
Your debt-to-income ratio compares your gross monthly income to your monthly debt payments, including the proposed mortgage. Fannie Mae caps a manually underwritten conventional loan at 36% DTI, with room to stretch to 45% when compensating factors like strong cash reserves are present. Files run through DU can be approved at ratios up to 50%.2Fannie Mae. Debt-to-Income Ratios Putting 10% down doesn’t trigger a special DTI limit, but a lower ratio means fewer conditions to clear.
Loan-to-Value Ratio
Ten percent down produces a 90% loan-to-value ratio. Fannie Mae’s eligibility matrix allows up to 95% LTV on a single-unit primary residence and up to 90% on a second home, so 90% LTV sits well within guidelines for both.3Fannie Mae. Eligibility Matrix
What PMI Costs and When It Ends
Any conventional loan above 80% LTV carries private mortgage insurance. It protects the lender if you default and does nothing for you except make the loan possible. Freddie Mac estimates PMI runs roughly $30 to $70 per month for every $100,000 borrowed.4Freddie Mac. Breaking Down Private Mortgage Insurance (PMI) On a $375,000 loan (10% down on a $416,000 home), that’s roughly $112 to $262 per month. Credit score drives most of the variation. Borrowers above 760 land near the bottom of the range; scores between 620 and 680 sit near the top.
Putting 10% down instead of 3% or 5% measurably reduces PMI premiums because the lender’s exposure is smaller. The savings compound every month the insurance is in place.
Federal law gives you two ways to end PMI. You can submit a written cancellation request once your balance reaches 80% of the home’s original value, provided you have a good payment history and no subordinate liens. Under the Homeowners Protection Act, “good payment history” means no payment 60 or more days late in the past two years and none 30 or more days late in the past 12 months.5Federal Reserve. Homeowners Protection Act of 1998 If you don’t request cancellation, your servicer must automatically terminate PMI when the balance is scheduled to hit 78% of the original value on the amortization schedule, as long as you’re current.6CFPB. Homeowners Protection Act (PMI Cancellation Act)
The gap between 80% and 78% matters. On a 30-year loan, waiting for automatic termination can mean an extra year or more of premiums. Note the projected 80% date at closing and request cancellation on time.
How Much Cash You Actually Need at Closing
The down payment isn’t the whole bill. Closing costs on a purchase typically run 1% to 3% of the sale price and cover lender fees, title insurance, recording fees, prepaid taxes, and homeowner’s insurance. On a $400,000 home, plan for roughly $4,000 to $12,000 on top of the $40,000 down payment.
Cash reserves can add another layer. For a manually underwritten loan on a single-unit primary residence, no reserves are required if your DTI is 36% or below. Between 36% and 45%, you’ll need six months of principal, interest, taxes, and insurance sitting in the bank after you close.3Fannie Mae. Eligibility Matrix Loans approved through DU may carry different reserve requirements based on the automated risk assessment. This is where 10% down buyers most often get stuck: they have the down payment but not enough left for reserves.
For documented funds, lenders want two months of statements from every checking, savings, and investment account, covering a full 60 days of activity and including the ending balance. Vested retirement account balances can count toward reserves.7Fannie Mae. Verification of Deposits and Assets Large, unexplained deposits during that window will trigger underwriter questions, so avoid moving money between accounts in the months before you apply.
Where the Down Payment Can Come From
Your Own Funds
Most buyers pull the 10% from checking, savings, or investment accounts. Lenders want to see the money seasoned in your accounts for at least two months before the application.
Gift Funds
For a single-unit primary residence at 90% LTV, Fannie Mae doesn’t require any minimum contribution from your own funds. The entire down payment can be a gift.8Fannie Mae. Personal Gifts The donor signs a gift letter confirming the money is a true gift with no expectation of repayment, and provides documentation showing they had the funds to give. Acceptable donors include relatives, domestic partners, and fiancés. Gifts from parties with a stake in the transaction (seller, agent, builder) don’t count.
Seller Concessions
The seller can put money toward your closing costs, but not toward the down payment itself. At 90% LTV, the maximum interested-party contribution is 6% of the sale price or appraised value, whichever is lower.9Fannie Mae. Interested Party Contributions (IPCs) If seller credits exceed your actual closing costs, the excess is deducted from the sale price for LTV purposes, which can shift your loan math. Negotiate credits to match your closing costs, not to exceed them.
Property Types That Allow 10% Down
Fannie Mae’s eligibility matrix draws clear lines about where 10% down works:
- Primary residence, one unit: 10% down is well within the 95% LTV maximum. This is the most common scenario.
- Second home, one unit: 10% down matches the 90% LTV maximum and is permitted.
- Investment property, one unit: minimum 15% down (85% LTV cap). Ten percent isn’t an option.
- Investment property, two to four units: at least 25% down required.3Fannie Mae. Eligibility Matrix
Multi-unit primary residences (a duplex, triplex, or fourplex where you live in one unit) follow different LTV and reserve rules. Check the eligibility matrix for the specific configuration before assuming 10% down applies.
2026 Loan Limit Ceiling
Your loan amount has to fall within the conforming loan limits the Federal Housing Finance Agency sets each year. For 2026, the baseline limit on a single-unit property is $832,750 in most of the country. In designated high-cost areas the ceiling rises to $1,249,125, and in Alaska, Hawaii, Guam, and the U.S. Virgin Islands it goes up to $1,873,675.10U.S. Federal Housing Finance Agency. FHFA Announces Conforming Loan Limit Values for 2026 If the purchase price with 10% down would push your loan above the applicable limit, you’d need either a larger down payment or a jumbo loan, which comes with tighter qualification standards and often higher rates.
Conventional 10% Down vs. FHA
Buyers with 10% to put down often weigh a conventional loan against an FHA loan, which allows 10% down as well (and goes as low as 3.5%). Mortgage insurance is usually where the choice turns.
FHA charges an upfront mortgage insurance premium of 1.75% of the loan amount, rolled into the balance at closing, plus an annual premium of 0.55%. With 10% or more down, FHA mortgage insurance drops off after 11 years. With less than 10% down, it stays for the life of the loan. Conventional PMI has no upfront premium and can be cancelled as soon as you reach 80% LTV, potentially well before that 11-year mark if you make extra payments or the home appreciates.
For credit scores above 720, conventional PMI is usually cheaper than FHA’s 0.55% annual premium, making conventional the lower-cost choice from day one. In the 620–680 range, FHA’s flat 0.55% rate can beat the higher conventional PMI that comes with lower scores. Run the numbers both ways with your lender. The break-even depends on your credit score, how long you plan to stay in the home, and how quickly you expect to build equity.