💰 Do You Really Need 20% Down to Buy a Home?

One of the biggest myths in real estate is that you need 20% down to buy a home. For many buyers, especially first-timers, that number feels overwhelming—and it often stops people from even starting the process.

Here’s the good news: you do not need 20% down to buy a home. In fact, there are several loan programs designed to help buyers get into homes with much lower down payments. Let’s break it down.

🚫 The 20% Down Myth

The idea that you need 20% down comes from the fact that lenders typically require private mortgage insurance (PMI) if you put down less than 20%. PMI protects the lender, not the buyer—but it doesn’t last forever. Once you build enough equity, it can be removed.

Yes, putting 20% down can help you avoid PMI and reduce your monthly payment, but waiting years to save that amount may cost you more in rising home prices and interest rates.

✅ Loan Options with Lower Down Payments

FHA Loans

• Down payment as low as 3.5%

• Flexible credit requirements

• Great option for first-time buyers or those rebuilding credit

VA Loans (for Veterans & Active Duty Service Members)

• 0% down payment

• No PMI required

• Competitive interest rates

• A well-deserved benefit for those who have served

USDA Loans (for qualifying rural areas, including many in NH & VT)

• 0% down payment

• Designed to encourage homeownership in less populated areas

• Income limits apply, but many homes in our region qualify

Conventional Loans

• Down payments as low as 3–5%

• PMI required under 20%, but can be removed as you gain equity

• More competitive options if you have stronger credit

📊 What This Means for You

If you’re waiting to buy until you have 20% saved, you might be putting your dream home on hold for no reason. With today’s loan programs, buyers can get into homes with far less cash up front—sometimes with no down payment at all.

The key is connecting with a knowledgeable lender who can walk you through the options and find the program that best fits your financial situation.

Ready to Explore Your Options?

You don’t have to wait years to save 20%—your homeownership journey could start much sooner. I work with trusted local lenders who can explain what you qualify for and help you take the next step.

Contact Samantha Catterall and Shannon Casey | Keller Williams Coastal and Lakes & Mountains