What is the minimum down payment typically required for a conventional loan?

The minimum down payment for a conventional loan often starts at 5%, but it can vary based on the lender and the specific loan program. Many lenders offer options that require a higher down payment of up to 20% to better qualify for favorable terms like avoiding private mortgage insurance (PMI) and achieving a lower interest rate. In some cases, there are programs that allow for lower down payments, but these typically come with stricter credit requirements and are less common.

This variability allows for a broader range of options tailored to different borrower circumstances, which is why the 5% to 20% range is cited as the minimum down payment. This flexibility addresses various risk assessments by lenders and individual borrower qualifications, making it a key aspect of conventional financing. The other options suggest significantly lower or higher down payments that do not accurately reflect typical conventional loan requirements, making them less relevant to the question's focus on conventional loans.