If you’ve been scrolling Zillow and talking yourself out of home ownership because you don’t have 20% saved, you’re not alone.
I can’t tell you how many first-time buyers I talk to weekly who are convinced they need that magic number before they can even think about buying.
Here’s the truth: You don’t.
The 20% Myth
Just last month, I met with a couple in Franklin who had been renting for four years. They were disciplined, saved every month, and finally had $40,000 in the bank.
But they thought they were still short of the “required” 20% down. When I told them a conventional loan could get them in the door with just 3%, their jaws dropped.
They could have bought a house two years ago.
That’s how powerful this myth is—it keeps people sitting on the sidelines for no reason.
👉 Related reading: Mortgage Broker vs. Bank: What’s the Smartest Way to Get a Home Loan in 2025?
The Actual Minimums
Here’s what the real numbers look like:
- Conventional loan: As low as 3% down for first-time buyers
- FHA loan: 3.5% down, with flexible credit requirements
- VA loan: 0% down for eligible veterans and active-duty service members
So instead of needing $60,000 for a $300,000 home, you might only need $9,000.
Or nothing at all if you're using VA benefits.
Big difference, right?
If You Do Have 20% Saved
Now, don’t get me wrong—having 20% in savings is fantastic.
But you don’t have to pour it all into the down payment. A lot of our clients choose to:
- Keep part of it in savings for peace of mind
- Use some for updates or renovations after moving in
- Pay closing costs out of pocket
- Or even buy down their interest rate for a lower monthly payment
Sometimes, the smarter move isn’t putting every dollar into the down payment—
it’s keeping flexibility for later.
👉 Want to see how a broker can structure this? Check out our Broker vs. Bank article
Don’t Forget About Closing Costs
Here’s something many first-time buyers don’t realize:
Your down payment isn’t the only expense.
Closing costs typically run 2–5% of the home price, covering things like:
- Appraisal
- Title insurance
- Prepaid taxes
- And other final steps to close the loan
I’ve seen buyers who only budgeted for the down payment hit a wall at closing.
It’s not fun—which is why we make sure you know the full picture upfront.
The Smarter Way Forward
Bottom line: Don’t let the 20% myth hold you back.
Plenty of our clients have bought with 3%, 5%, or even $0 down.
What matters most is having a plan that:
✅ Fits your goals
✅ Keeps you comfortable after you move in
And that’s where we come in.
Ready to See What’s Really Possible?
Skip the guessing.
Start with a quick pre-approval and get real numbers:
- What programs you qualify for
- How much you’ll need upfront
- How to make the most of what you’ve saved
👉 Pre-Approval here with OnPoint Mortgage, LLC
👉 Prefer to talk it through? Book an appointment
Because the smartest buyers aren’t the ones who waited until they had 20% They’re the ones who had the right strategy from the start.
