If you’ve been holding off on buying a home because you think you need a massive 20% down payment, I’ve got great news for you—that’s not true!
For years, the idea that you must put down 20% to buy a home has kept many buyers on the sidelines. But the reality? There are plenty of low-down-payment (and even no-down-payment!) options available. Let’s break it down so you can stop renting and start owning sooner than you thought possible.
Why the 20% Myth Persists
The 20% down payment rule became popular because:
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It helps buyers avoid private mortgage insurance (PMI).
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It can lead to lower monthly payments and better loan terms.
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It was once the standard for conventional loans.
But here’s the thing—it’s not a requirement. In fact, many first-time buyers put down far less.
Low-Down-Payment Options You Should Know About
1. FHA Loans (As Low as 3.5% Down)
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Backed by the Federal Housing Administration.
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Great for buyers with lower credit scores (as low as 580).
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Only 3.5% down required if your credit is 580+.
2. Conventional Loans (As Low as 3% Down)
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Programs like Fannie Mae’s HomeReady® or Freddie Mac’s Home Possible® allow just 3% down.
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Perfect for first-time buyers or those with moderate incomes.
3. VA Loans (0% Down for Veterans & Service Members)
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If you’re a veteran, active-duty service member, or eligible spouse, you could qualify for no down payment at all.
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No PMI required, and often come with competitive rates.
4. USDA Loans (0% Down for Rural & Suburban Buyers)
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Designed for homes in eligible rural (and some suburban) areas.
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No down payment required for qualified buyers.
5. Down Payment Assistance Programs (Grants & Forgivable Loans)
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Many states and local organizations offer free money (yes, really!) to help cover down payments and closing costs.
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Some programs provide forgivable loans if you stay in the home for a certain number of years.
The Bottom Line
Waiting to save 20% could mean missing out on:
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Building equity instead of paying rent.
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Taking advantage of today’s home prices & interest rates (because markets change!).
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Owning a home sooner—why wait if you don’t have to?
If you’re ready to explore your options, let’s chat! I can help you find the right loan program and get you into a home with less cash upfront than you might think.
Your dream home is closer than you realize—let’s make it happen!
Email me at [email protected] today to get started.
