Do You Really Need 20% Down to Buy a Home? Let’s Keep It Simple.
You’ve probably heard you need a 20% down payment to buy a home. But is that really the rule? Not quite. Let’s break it down and see what’s actually possible for you.
Why 20% Gets Talked About So Much
Putting 20% down has its perks, and it’s still a popular move for some buyers. Here’s why:
In a competitive market, a bigger down payment can help your offer stand out.
It might get you a better rate or help you avoid mortgage insurance.
More people have been doing it—48% of buyers put 20% down in early 2021 (up from 40% in 2011).
Even 28% of first-time buyers are choosing to go big with their down payment.
But Most First-Time Buyers Don’t Go That Route
Here’s the real story: most first-time buyers are putting down around 7%. That’s a much more doable number—and it still gets the job done.
Why Some Buyers Do Put More Down
A larger down payment might help you:
Stand out to sellers
Score a better interest rate
Skip mortgage insurance (PMI) altogether
But if 20% isn’t in the cards? No problem. There are plenty of other ways in.
You’ve Got Options (Seriously)
There are home loan programs out there designed to help more people become homeowners—even with a smaller down payment:
Conventional loans: As little as 3% down
FHA loans: Just 3.5% down
VA & USDA loans: 0% down if you qualify
You don’t have to wait until you’ve saved up a mountain of cash.
How Do You Know What’s Right for You?
Ask yourself:
How much have I saved?
How long do I plan to stay in the home?
What’s the market like where I want to buy?
We can help you work through all of that—no stress, no pressure.
Smart Tips for Down Payment Planning
Don’t drain your savings—leave room for moving costs, home repairs, and life stuff.
Use a high-yield savings account to grow your down payment faster.
Try a mortgage calculator to see what your monthly payments could look like with different down payment amounts.
Is 20% Down the Best Move?
Pros:
Lower monthly payments
No PMI
Could strengthen your offer
Cons:
Takes longer to save
Might delay your move
Ties up more of your cash
Bottom line? You don’t need 20% to buy a home. Many buyers put down much less—and still get into homes they love.
Let’s Keep It Simple
You don’t have to figure this out on your own. We’re here to help you explore your loan options, see what you qualify for, and find a down payment strategy that fits your life and budget.
Ready to take the next step?
Let’s chat. We’ll help you keep it super simple—and get you closer to home.