Good question! :)
With an FHA purchase loan, you only need 3.5% down payment (3.5% of the purchase price of the home). Conventional purchase loans: some let you put 5%, 10%, 15% or more down payment.
If you can do so without it being too tough on you, a 20% down payment for a conventional type purchase loan will normally waive your having to pay monthly mortgage insurance (PMI).
It depends on your situation, how much money you've saved, price range of home you want , & other factors, such as, will you have enough left in your checking & savings to cover unexpected home repairs or other expenses, a buffer savings for "rainy days" and/or an "emergency fund", etc.
It may help to talk over your options with an experienced loan consultant & realtor, your own financial consultant, trustworthy family / friends, your tax advisor, or some / all of the above, to decide what's best for you!
Please feel free to contact me to discuss the loan options'side of buying a home, & the real estate side. I'd be happy & honored to see if we can help you get what you want within your comfortable, affordable budget.
Sincerely & best,
Dwayne R. Saunders
ERA Yes! Real Estate & Yes! Mortgage
Glendora, CA (562) 213-7171 Cell