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Can You Buy a Housz With Less Than 20 Percent Down?


If you’re getting ready to buy your first housz, you’re likely focused on saving up for everything that purchase involves. One cost that’s likely top of mind is your down payment. But don't let a common misconception about how much you need to save make the process harder than it could be.

Understand 20% Isn’t Always the Typical Down Payment Freddie Mac explains: “. . . nearly a third of prospective houszbuyers think they need a down payment of 20% or more to buy a housz. This myth remains one of the largest perceived barriers to achieving houszownership. Unless specified by your loan type or lender, it’s typically not required to put 20% down. This means you could be closer to your houszbuying dream than you realize. According to the National Association of Realtors (NAR), the median down payment hasn’t been over 20% since 2005. In fact, the median down payment today is only 14%. And it’s even lower for first-time houszbuyers at just 6% (see graph below):


Learn About Options That Can Help You Toward Your Goal If saving for a down payment still feels like a challenge, know that there’s help available. A real estate professional and trusted lender can show you options that could help you get closer to your down payment goal. According to latest Houszownership Program Index from Down Payment Resource, there are over 2,000 houszbuyer assistance programs in the U.S., and the majority are intended to help with down payments.

Plus there are even loan types, like FHA loans, with down payments as low as 3.5%, as well as options like VA loans and USDA loans with no down payment requirements for qualified applicants. To understand your options, be sure to do your homework. If you’re interested in learning more about down payment assistance programs, information is available through sites like Down Payment Resource. Then, partner with a trusted lender to learn what you qualify for on your houszbuying journey.

Bottom Line Remember, a 20% down payment isn’t always required. If you want to purchase a housz this year, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your down payment options.

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