Your loan amount can be up to the area's limits no matter what the home price is. So for a $1M home, you would put down $363,850 at the loan limit stated above. If you can qualify, go for a conventional loan. At that down payment, you won't need mortgage insurance. You would pay mortgage insurance on the FHA loan even though you are making a substantial down payment. Plus, FHA has an upfront premium of 1.75% of the loan amount or about $11,000 in this case. If you go with FHA, keep in mind that the upfront premium can be above and beyond the area's loan limit.