You Don't Need a 20% Down Payment

No, you do not need a 20% down payment to buy a home. While this is a common myth, most modern homebuyers put down much less. Depending on your credit score and loan program, you can purchase a home with as little as 3% to 5% down, or even 0% down through specific government-backed programs.

If you want to avoid a conventional 20% down payment, several low-down-payment options exist. Conventional loans can require as little as 3% down. FHA loans require a minimum of 3.5% down, while USDA and VA loans offer 0% down payment options for eligible rural buyers and qualified military service members.

Many first-time homebuyers believe they must save a massive 20% down payment, but the average down payment for first-time buyers is typically between 6% and 8%. Repeat buyers average around 11% to 15%. This shows that most real estate transactions today do not require a standard twenty percent down.

Yes, if you put less than a 20% down payment on a conventional loan, lenders typically require Private Mortgage Insurance (PMI). PMI protects the lender if you default. However, PMI is not permanent; you can request to cancel it once your home equity reaches 20% through mortgage payments or rising home values.

Yes, you can completely bypass the traditional 20% down payment with specific federal loan programs. VA loans offer 0% down for active-duty military, veterans, and eligible surviving spouses. Additionally, USDA loans offer 0% down for homes in designated rural areas, making homeownership highly accessible without a large upfront payment.

The best way to move past the 20% down payment myth is to speak with an experienced local lender. A reputable lender will review your financial profile, credit score, and savings to match you with low-down-payment options like FHA, VA, or conventional loans that fit your budget and homeownership goals.