Plan on a down payment for a million dollar house of roughly $100,000 to $200,000, or 10% to 20% of the price. Twenty percent is the common target because it avoids private mortgage insurance and, in most of the country, keeps your loan small enough to qualify as a conforming mortgage rather than a jumbo. Ten percent is achievable with strong credit, but it pushes you into jumbo territory and adds either PMI or a rate premium. The right number for you depends on your credit profile, where you are buying, and how much cash you can part with while still covering closing costs and lender-required reserves.
What Each Down Payment Tier Looks Like
The three common tiers on a million-dollar purchase:
- 20% ($200,000). Your loan is $800,000, which sits below the 2026 baseline conforming limit of $832,750. You avoid PMI, qualify for the best rates, and meet the underwriting preferences of most national lenders.
- 15% ($150,000). Your loan is $850,000, just above the baseline conforming limit, so you will likely need a jumbo loan in standard-cost areas. In designated high-cost areas, where the 2026 conforming ceiling rises to $1,249,125, the same loan stays conforming.1Federal Housing Finance Agency. FHFA Announces Conforming Loan Limit Values for 2026
- 10% ($100,000). Available from many jumbo lenders if your credit is strong. The $900,000 loan is jumbo in baseline markets but can remain conforming in high-cost areas.
The practical takeaway: location matters as much as the dollar figure. In parts of California, the New York metro, Hawaii, and similar high-cost markets, even 10% down keeps you inside conforming limits. In the rest of the country, you generally need to put down at least about 17% to stay conforming on a million-dollar purchase.
Why the Conforming Line Matters
Loans above the local conforming limit are jumbo loans, which Fannie Mae and Freddie Mac do not back. Lenders carry more of the default risk themselves, and jumbo rates typically run 0.125 to 0.50 percentage points above conforming rates. On an $800,000 to $900,000 balance over 30 years, even a quarter-point difference compounds into tens of thousands of dollars of extra interest. Putting enough down to stay conforming can more than pay for itself over the life of the loan.
Cash You Need Beyond the Down Payment
The down payment alone understates what you need in the bank at closing.
Closing Costs
Closing costs usually run 2% to 5% of the loan amount and cover the appraisal, title insurance, origination fees, attorney fees, and escrow deposits.2Fannie Mae. Closing Costs Calculator On an $800,000 mortgage, that is roughly $16,000 to $40,000.
Transfer and Mansion Taxes
About a half-dozen states and Washington, D.C. impose transfer or mansion taxes that trigger at certain price thresholds, with rates ranging from roughly 1% to over 4%. On a million-dollar purchase, even a 1% tax is $10,000 of extra cash due at closing. Check your state and city before setting your cash budget.
Post-Closing Reserves
Lenders also require you to keep liquid reserves after closing, measured in months of your full housing payment (principal, interest, taxes, and insurance). On a million-dollar purchase, 3 to 6 months is a common requirement, often $25,000 to $50,000 in accessible accounts beyond what you spend at closing. Checking, savings, money market, and brokerage balances count at face value. Retirement accounts can count, but lenders often credit only 60% to 70% of the balance because withdrawals trigger taxes and penalties.
Add it up and a buyer putting 20% down on a million-dollar home should expect a total upfront outlay of about $225,000 to $260,000 or more, with another $25,000 to $50,000 untouched in reserves.
What You Need to Qualify
Credit Score
Jumbo lenders set their own criteria because the loans are not backed by Fannie Mae or Freddie Mac. Most require a minimum FICO score of 680 to 700, and some set the bar at 740 or higher for the lowest down payment options. Scores above 760 generally unlock the best rates and the widest menu of programs.
Debt-to-Income Ratio
Your debt-to-income ratio is total monthly debt payments divided by gross monthly income. Most jumbo lenders cap it between 43% and 50%. A buyer earning $20,000 a month, for example, would need total monthly debts, including the new mortgage, to stay below roughly $8,600 to $10,000. Paying down car loans, student debt, or credit card balances before you apply can meaningfully increase how much a lender will extend.
Private Mortgage Insurance Under 20%
A down payment below 20% generally triggers private mortgage insurance, which protects the lender if you stop paying.3Fannie Mae. What to Know About Private Mortgage Insurance The handling differs by loan type.
On a conforming loan, PMI is calculated as a percentage of your balance, often roughly 0.5% to just under 2% per year. On an $850,000 loan, that could add $350 to $1,400 to your monthly payment.
On a jumbo loan, many lenders waive PMI entirely with as little as 10% down and build the added risk into a slightly higher interest rate instead. You still pay for the risk, just through the rate rather than a separate line item. Some lenders also offer single-premium PMI, paid as a lump sum at closing; it eliminates the monthly charge but ties up more cash upfront and may not be recoverable if you sell or refinance early.
The Tax Case for Putting More Down
Federal law caps the mortgage interest deduction at interest on the first $750,000 of mortgage debt for loans taken after December 15, 2017 ($375,000 if married filing separately).4Internal Revenue Service. Publication 936, Home Mortgage Interest Deduction That cap was made permanent under the One Big Beautiful Bill Act signed in 2025.
The practical effect: if your loan is $800,000, interest on the first $750,000 is deductible and interest on the remaining $50,000 is not. Putting 25% down ($250,000) brings your balance to exactly $750,000, so every dollar of interest you pay is deductible. For high-income buyers who itemize, that is a real reason to consider pushing past the standard 20% target.
A higher $1 million cap ($500,000 if married filing separately) still applies to mortgage debt taken on before December 16, 2017, which can matter if you are refinancing older debt.4Internal Revenue Service. Publication 936, Home Mortgage Interest Deduction
Appraisal Gaps and a Cash Cushion
A lender will not finance more than the appraised value of the home. If the appraisal comes in below your contract price, say $950,000 on a $1,000,000 deal, you have a gap you must cover with extra cash, renegotiate with the seller, or walk away under an appraisal contingency. Lenders originating higher-priced mortgage loans must obtain a written appraisal from a licensed or certified appraiser that includes an opinion of market value.5Consumer Financial Protection Bureau. Higher Priced Mortgage Loan Rule Compliance Guide
Appraisal gaps are not uncommon at the million-dollar level because comparable sales data can be thin in luxury markets. Keeping a cash cushion beyond your planned down payment, closing costs, and reserves is the simplest protection against having a deal fall apart at the appraisal step.