The honest answer
Most buyers ask this question hoping for a single number. There isn’t one. The down payment a buyer needs in Reno depends on the loan program, the property type, the intended use of the home, and the buyer’s full file.
The thing most people get wrong is the assumption that 20% down is the baseline. It is not. For a primary-residence purchase, most qualified buyers can put down meaningfully less.
Down payment by loan type
Rough ranges, for a primary residence in Reno or the surrounding Northern Nevada market:
- Conventional loan. First-time buyers may qualify with as little as 3% down. Most repeat buyers can use a 5% conventional loan. Mortgage insurance applies under 20%, but it can be removed later as the loan-to-value drops.
- FHA loan. 3.5% down is the program minimum for borrowers meeting the credit threshold. FHA also has its own mortgage insurance structure, which behaves differently than the conventional version.
- VA loan. Eligible veterans, active-duty service members, and surviving spouses may be able to purchase with no down payment, subject to VA entitlement and the lender’s underwriting.
- USDA loan. Available for eligible properties in designated rural areas; some properties on the outskirts of Washoe County may qualify. No down payment required for eligible borrowers.
- Jumbo loan. Higher down payments are typical for loan amounts above the conforming limit — often 10% to 20% or more, depending on the program, the buyer’s credit, and the reserves they can document.
Different programs are not interchangeable. The lowest-down-payment option is not always the cheapest option over five years. That’s where the planning conversation starts to matter.
Down payment vs. cash to close
A common misconception: down payment is not the same as cash to close.
The down payment is the portion of the purchase price the buyer brings. Cash to close is the full amount the buyer wires before closing — which also includes:
- closing costs (lender fees, title and escrow, recording),
- prepaid items (taxes, insurance, prepaid interest),
- escrow reserves the lender collects up front,
- any inspection or appraisal fees not already paid.
In Reno, a buyer making a 5% down payment on a typical home should plan for cash to close that exceeds the down payment by a meaningful amount. The exact figure depends on the property and the loan structure, and a real loan estimate will show it line by line.
Second homes and investment properties
The down-payment math changes when the property is not a primary residence.
- Second homes (including a Tahoe vacation home) typically require at least 10% down, often more on the jumbo side, with reserves above and beyond.
- Investment properties (rentals, including DSCR-style loans) generally require 15% to 25% down, sometimes more.
- Short-term rentals. If the property will be used as a short-term rental, the file is sometimes underwritten differently — and HOA or local rules in places like Incline Village or South Lake Tahoe may also affect the plan.
If you’re buying in Tahoe, the down payment conversation is rarely the same as the Reno primary-residence conversation. Worth flagging early.
What I’d think about before deciding
A few questions to ask before you commit to a down-payment plan:
- Reserves. What do you have left after closing? Lenders care about reserves, and so should you.
- Mortgage insurance. Putting down 5% with mortgage insurance is sometimes a better deal over five years than putting down 20% by depleting savings.
- Opportunity cost. Cash you put into a down payment is cash you can’t deploy elsewhere. Sometimes that’s right; sometimes it isn’t.
- Loan program fit. A conventional 5% loan and an FHA 3.5% loan can produce very different long-term costs for the same buyer. Worth running both ways before choosing.
This is the kind of math that’s worth doing carefully — and worth doing once with a real lender, before the offer.
Talk with Meredith
If you’d like a clear cash-to-close plan — not just a down-payment number — schedule a 30-minute call. I’ll show you the difference between programs side by side, including reserves and the mortgage insurance picture, so you can see which path is actually cheapest for you.
The right answer is rarely “the smallest down payment” or “the largest.” It’s the one that fits your file and the rest of your life.