The answer depends on your financial situation and your goals. If you don’t have a lot of money to work with, then a 5% down payment may be your only option. This will allow you to buy a home without having a ton of money to start with. However, if you have the funds available, a 20% down payment will allow you to avoid paying mortgage default insurance. This is another cost that is added to your mortgage if you put a down payment of less than 20%.