# Down payment

> The part of the price you pay in cash at closing. Your mortgage covers the rest. Some loans for first-time buyers accept as little as 3%, and an FHA loan as little as 3.5%.

By David Knorr, founder of BuyWise Home. Last reviewed October 28, 2026. Web page: https://www.buywisehome.com/guide/glossary/down-payment

## Why it matters to you

On a conventional loan, less than 20% down usually means paying [PMI](https://www.buywisehome.com/guide/glossary/pmi). Your [earnest money](https://www.buywisehome.com/guide/glossary/earnest-money) counts toward it at closing. Ask your lender about down payment help: Georgia's state program is called Georgia Dream. It's mainly for first-time buyers, with income and price limits and a minimum credit score, so check what [may fit your home](https://www.buywisehome.com/guide/tools/down-payment-help).

## Related

- [Step 1: Am I ready to buy?](https://www.buywisehome.com/guide/ready-to-buy)
- [PMI](https://www.buywisehome.com/guide/glossary/pmi): Insurance you pay when you put down less than 20%. It protects the lender.
- [FHA loan](https://www.buywisehome.com/guide/glossary/fha-loan): A government-backed mortgage with down payments from 3.5%.
- [Closing costs](https://www.buywisehome.com/guide/glossary/closing-costs): Fees paid at closing on top of the down payment, often 2%–5% of the price.
- [Earnest money](https://www.buywisehome.com/guide/glossary/earnest-money): A good-faith deposit held in escrow and credited to you at closing.

_General information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice._