Do You Really Need 20% Down to Buy a Home? Not Anymore.

Do You Really Need 20% Down to Buy a Home? Not Anymore.

For a long time, homebuyers were told to save 20% before making an offer. While that’s still a solid goal, it’s no longer the standard—and that’s good news if you’re ready to buy but haven’t hit that number.

Many loan programs today require as little as 3%–5% down. On a $400,000 home, that’s $12,000–$20,000 instead of $80,000. Even a 6% down payment looks more manageable:

• $200K → $12,000

• $300K → $18,000

• $400K → $24,000

• $500K → $30,000

• $600K → $36,000

• $700K → $42,000

• $800K → $48,000

  
  

Of course, the less you put down, the higher your monthly payment—so the right amount depends on your savings, income, and long-term plans.

Loan Types Worth Considering

• Conventional Loans – As little as 3% down, but private mortgage insurance (PMI) applies under 20%.

• FHA Loans – Flexible credit requirements, low down payments, higher mortgage insurance.

• VA Loans – For eligible service members, veterans, and spouses; no down payment, no PMI.

• USDA Loans – For qualifying buyers in rural/suburban areas; no down payment required.

• Jumbo Loans – For high-value homes; larger down payment, stricter qualifications.

• Fixed-Rate vs. Adjustable-Rate (ARM) – Fixed offers payment stability; ARMs start lower but can change over time.

  
  

Bottom Line

You don’t have to hit 20% to get the keys to your new home. Understanding your loan options and running the numbers with a knowledgeable mortgage professional can help you choose the best fit—so you can focus on finding a home you love instead of worrying about an outdated rule.

Let me help you get started!