The amount you need for a down payment depends on the type of loan and your financial situation. While 20% is a common benchmark, many buyers put down less—some conventional loans allow as little as 3%, and FHA loans require just 3.5%.  

In competitive markets, sellers often consider the amount of down payment when comparing multiple offers.  The more money a buyer is able to put down on a home is often considered a measurement of the buyer's ability to purchase the property.