Downpayment
Do You Really Need 20% Down to Buy a Home? Is there a Down Payment Assistance Available?
-
Brady Webb
I’m seeing this every single week… Buyers are sitting on the sidelines because they believe they need 20% down to buy a home.
And honestly? That belief is costing people time, opportunity, and sometimes thousands of dollars in missed equity. Let’s clear this up.
The 20% Down Payment Myth
Somewhere along the way, the idea stuck that you have to put 20% down to buy a home. You don’t.
In fact, that’s one of the biggest misconceptions in real estate today.
Most buyers—especially first-time buyers—are putting down significantly less. And there are solid, proven loan programs designed specifically for that.
What Buyers Are Actually Putting Down
Here’s what’s really happening in today’s market:
- Many first-time buyers are putting down closer to 6%–10%
- Some programs allow as little as 3% down
- Others (like VA and USDA loans) can offer 0% down for those who qualify
So if you’ve been waiting to hit that 20% number… you might be waiting longer than you need to.
Why This Myth Holds People Back
This is where I push back a little. Why?
Waiting to save 20% sounds responsible—but it can actually work against you.
Why?
- Home prices don’t stand still
- Rent keeps going up
- And while you’re waiting, you’re not building equity
In some cases, it can take years (even decades) to save 20%—and by then, the market has already moved.
Why You Should Look into Down Payment Assistance Programs
There are a lot of programs designed to help you save for a down payment – and they can make a big difference in how fast you hit your savings target. Unfortunately, buyers don’t realize how many there are, or that they may qualify for help.
According to research, almost 80% of first-time homebuyers qualify for down payment assistance (DPA), but only 13% actually use it (see chart below):
And that’s another big miss holding would-be buyers like you back.
Does 20% Down Ever Make Sense?
Yes—sometimes.
Putting 20% down can:
- Lower your monthly payment
- Help you avoid mortgage insurance
- Give you more equity upfront
But here's the key: It's an option, not a requirement.
And for a lot of buyers, tying up that much cash isn’t the smartest move.
What Actually Matters More
This is where Google falls short. Your down payment isn’t a one-size-fits-all number.
What really matters is:
- Your income and debt-to-income ratio
- Your credit profile
- Your long-term goals
- How much cash you want to keep on hand after closing
That’s why two buyers looking at the same home can have completely different strategies.
Bottom Line
If you’ve been holding off because you think you need 20% down… You might be closer than you think.
The smartest move isn’t guessing or Googling—it’s running the numbers based on your situation. Because once you see what’s actually possible, everything changes.
If you want to know what it would look like for you personally, reach out. I’ll walk you through it—no pressure, just real numbers.
📍 Cape Coral, FL: (239) 766-8344
📍 Louisville, KY: (502) 327-9770
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.
Your Mortgage Broker in Cape Coral FL & Louisville KY. We are licensed in Florida, Kentucky, and Indiana.
- Services
- Blog
- Locations
- Contact
Copyright © 2026 American Mortgage Solutions NMLS: 1364/MB73346
Licensed in: FL, KY, IN
FL-MBR1574, KY-MB73346
Copyright © 2026 American Mortgage Solutions NMLS: 1364/MB73346
Licensed in: FL, KY, IN
FL-MBR1574, KY-MB73346
American Mortgage Solutions follows all Equal Housing laws. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.
These materials are not from HUD, FHA, the USDA, or the VA. These materials were not approved by any government agency. They are independent of any government agency. We are not in any way affiliated with any organization listed or referenced within this website, including HUD/FHA/USDA/VA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners. For information directly from HUD/FHA, visit https://www.hud.gov/guidance For information directly from the VA, visit http://www.benefits.va.gov/HOMELOANS/ For information directly from the USDA, visit http://www.usda.gov/wps/portal/usda/usdahome?navid=GRANTS_LOANS