There are mortgage options now available that only require a down payment of 5% or less of the purchase price of the home. Some mortgages do not require a down payment at all. But the larger the down payment, the less you have to borrow and the more equity you will have in your home. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan. When considering the size of your down payment, consider that you will also need money for closing costs, moving expenses, and potentially repairs and decorating.