One of the most persistent myths in homebuying is that you need a 20% down payment to buy a home. While putting 20% down does eliminate mortgage insurance, it is far from a requirement. Many buyers are surprised to learn how many low-down-payment options exist — and how accessible homeownership can be with the right loan program.
What Down Payment Options Exist?
Down payment requirements vary by loan type. Here's a quick breakdown of the most common programs:
- •Conventional loans: as little as 3% down for qualified buyers.
- •FHA loans: 3.5% down, popular with first-time buyers.
- •VA loans: 0% down for eligible veterans and active service members.
- •USDA loans: 0% down in eligible rural and suburban areas.
Does a Smaller Down Payment Cost More?
A lower down payment means you finance more, so your monthly payment is higher and you'll typically pay mortgage insurance until you build enough equity. But waiting years to save 20% can cost you in other ways — rising home prices and interest rates often outpace the savings rate.
The 'right' down payment isn't a single number — it's the one that fits your budget and timeline while getting you into a home sooner.
Next Steps
Not sure which program fits you? A quick pre-qualification conversation can show you exactly what you'd qualify for and what your down payment would look like across programs. Reach out and we'll walk you through the numbers for your situation.
