For years, a persistent myth has kept many would-be buyers on the sidelines: the idea that you must put down 20% to buy a home. While putting 20% down can offer advantages, it’s far from a requirement — and believing this myth might be holding you back from achieving your dream of homeownership.
Let’s set the record straight.
Where Did the 20% Myth Come From?
The 20% figure likely originated from the idea of avoiding private mortgage insurance (PMI). PMI is typically required when a buyer puts down less than 20% on a conventional loan, and it adds a small cost to the monthly mortgage payment. While it’s true that putting 20% down can help you sidestep PMI, that doesn’t mean it’s necessary to qualify for a mortgage — or a wise decision to wait until you can.
How Much Do Buyers Really Put Down?
According to the National Association of Realtors (NAR), the median down payment for all homebuyers is just 15%, and for first-time buyers, it’s even lower — around 8%. Many successful homeowners started with far less than 20% down.
And with the right guidance, you can too.
Low and No Down Payment Options Exist
Depending on your financial situation and loan type, you may qualify for one of several programs designed to make homeownership more accessible:
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FHA Loans: Backed by the Federal Housing Administration, these loans allow down payments as low as 3.5%.
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VA Loans: For eligible veterans and active-duty military members, 0% down is often an option — no PMI required.
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USDA Loans: For buyers in qualifying rural areas, these offer 0% down as well.
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Conventional Loans: Some lenders offer conventional loans with as little as 3% down for qualified buyers.
In addition, down payment assistance programs at the state and local levels can help bridge the gap for eligible buyers.
Waiting Could Cost You More
While saving for a larger down payment might seem smart, waiting too long can actually backfire. Rising home prices and interest rates can increase the cost of buying — potentially outpacing your savings.
Instead of focusing solely on hitting 20%, it’s often wiser to find a comfortable monthly payment, evaluate your financial readiness, and explore all available options with a trusted mortgage professional.
Bottom Line
You don’t need a 20% down payment to become a homeowner. With flexible loan programs, helpful assistance options, and the right guidance, buying a home may be closer than you think.
Let’s connect and explore what’s possible for you — you might be surprised by how affordable your path to homeownership really is.
Providing guidance and assisting motivated buyers, sellers, tenants, landlords, and investors in marketing and purchasing property for the right price under the best terms. Determining clients’ needs and financial ability to purchase the best home for them. Call me today and let me help you find a home that can change your life!