You Don’t Need 20% Down — Here’s the Truth

One of the biggest myths in home buying is that you need to save up 20% to qualify for a mortgage. That’s simply not true. Today’s loan programs make it possible to purchase a home with much less — even 0% down in some cases.

Down Payment Requirements by Loan Type

Here’s a quick breakdown of common options:

• Conventional Loan – As low as 3% down for qualified buyers

• FHA Loan – 3.5% down and more flexible credit requirements

• VA Loan – 0% down for eligible veterans and service members

• USDA Loan – 0% down in qualifying rural areas

On a $300,000 home, that’s:

• $9,000 with 3%

• $10,500 with 3.5%

• Or $0 with VA or USDA loans

What Is Down Payment Assistance?

Down payment assistance (DPA) programs help cover your upfront costs through grants, forgivable loans, or low-interest second mortgages. These funds can often be used for both the down payment and closing costs.

Many programs are available to:

• First-time homebuyers

• Moderate-income households

• Public service workers (teachers, EMTs, nurses)

• Buyers in targeted neighborhoods

Do You Qualify for Down Payment Help?

Most DPA programs have:

• Income limits based on area

• Purchase price caps

• Minimum credit score (often 620 or higher)

• Homebuyer education requirements

A local loan officer can help you review which programs are active in your state or city.

Helpful links:
https://www.downpaymentresource.com
https://www.hud.gov/buying/localbuying

You May Be Closer Than You Think

With the right strategy, you don’t have to let a down payment hold you back. Whether it’s a low-down-payment loan or assistance program, a little research can save you thousands and help you get into your home sooner.