How Much Do You Really Need for a Down Payment?

Many future homeowners delay buying because they think they need to save a massive pile of cash. The traditional advice of saving twenty percent is completely outdated. There are multiple loan programs designed to help you buy a house with a very small upfront investment.

The Myth of Twenty Percent

Putting twenty percent down does have some benefits, like avoiding private mortgage insurance. However, it is absolutely not required to purchase a home. Waiting years to save that much cash can mean missing out on valuable home appreciation. Most first-time buyers put down significantly less.

Low Down Payment Options

If you have decent credit, conventional loans allow for down payments as low as 3%. Government-backed FHA loans are incredibly popular because they only require a 3.5% down payment. These programs make homeownership accessible to families who are still building their savings.

Zero Down Payment Programs

If you meet specific eligibility requirements, you might not need a down payment at all. VA loans allow eligible military veterans and service members to buy with 0% money down. USDA loans also offer zero down payment options for buyers purchasing in qualifying rural areas.

Speak with a Loan Officer at our Mortgage Brokerage to review your savings and explore your options. We can help you find a loan program that fits your specific financial situation.

Expect to close one week early.

Frequently Asked Questions

Do I need a 20% down payment to buy a house?

No. While it helps you avoid mortgage insurance, you can buy a home with a much smaller down payment.

What is the lowest down payment for a conventional loan?

Some conventional loan programs allow first-time buyers to purchase a home with as little as 3% down.

How much is the down payment for an FHA loan?

FHA loans require a minimum 3.5% down payment for borrowers with a credit score of 580 or higher.

Are there any zero down payment mortgages?

Yes. VA loans and USDA loans both offer 0% down payment options for buyers who meet the specific program requirements.