Do you need 20% down to buy a house? Secondary Keywords How much do I need for a down payment? Minimum down payment for a house Buy a home with less than 20% down First-time home buyer down payment Low down payment mortgage options Target Money Page ➡️ First-Time Home Buyer Secondary Internal Links Down Payment Assistance FHA Loans VA Loans Conventional Loans Mortgage Pre-Approval

Mortgage rates received welcome relief this week after inflation data came in cooler than expected. While that doesn't guarantee lower rates ahead, it is another step in the right direction. Inflation Continues Moving Lower Both the Consumer Price Index (CPI) and Producer Price Index (PPI) showed inflation easing more than economists expected. That's important because inflation is one of the biggest drivers of mortgage rates. When inflation cools, investors generally become m

Most people assume buying a new car only affects one thing: their monthly budget. But if you're planning to buy a home in the next year or two, that new car payment could have a much bigger impact than you realize. Every week, I talk with buyers who are surprised to learn that a vehicle they financed months earlier reduced the amount of home they qualified to purchase. The issue isn't the car itself. It's the monthly obligation that comes with it. Understanding how

Do you need perfect credit to buy a house? Can I buy a house with a 620 credit score? Minimum credit score for a mortgage California home buyer credit score FHA credit requirements

If you ask most people what the biggest mistake homebuyers make is, you'll probably hear answers like: Buying too much house Waiting too long Not saving enough money Having poor credit While all of those can create challenges, they're not the mistake I see most often. The biggest mistake I see is something much simpler. People fall in love with a house before they fall in love with the numbers. That emotional decision can become surprisingly expensive. Buying a Ho

One of the biggest misconceptions among first-time buyers is believing they need excellent credit before speaking with a mortgage professional. While a higher credit score can improve financing options, many buyers qualify with scores that are lower than they expect. Credit Score Is Only One Piece Lenders also evaluate: Income Employment Down payment Debt-to-income ratio Assets Loan program A borrower with a 620 score and strong compensating factors may have more opti

One of the biggest problems move-up buyers face has nothing to do with mortgage rates. It’s timing. You found the next home. You want to make an offer. But most of your money is tied up in your current house. Now what? For many homeowners, the traditional answer has been: Sell first. Move out. Find temporary housing. Then buy the next home. That works. But it isn’t the only option. Why Buying and Selling at the Same Time Can Be Difficult Most homeo

Receiving a Dream For All voucher can create an incredible opportunity to buy a home in California. But there's one important detail buyers shouldn't overlook. The voucher doesn't last forever. Every voucher holder should understand their expiration date and how that deadline affects their home search. That's especially important in today's housing market. Finding the right property can take time. A buyer may spend weeks—or even months—looking at homes before find

Most buyers think a pre-approval is a pre-approval. It isn’t. There can be a big difference between a lender reviewing a loan application and issuing a basic pre-approval letter… And having an underwriter actually review the buyer’s income, assets, credit, and documentation before an offer is accepted. That difference can matter. Especially in a competitive housing market. What Is a Fully Underwritten Pre-Approval? A traditional mortgage pre-approval typically i

If you've spent any time searching for homes in San Francisco, you've probably seen it. A property appears in a neighborhood you like. The location looks great. The interior looks similar to nearby condominiums. But the price is noticeably lower. What's the catch? Sometimes, the answer is that the property isn't actually a condominium. It's a TIC. A Tenancy in Common allows multiple people to own fractional interests in the same property. For buyers, TIC own

Receiving a Dream For All voucher can feel like crossing the finish line. It isn’t. It’s the beginning of the homebuying process. One of the biggest mistakes buyers can make is receiving a voucher and then waiting until they find a home to make sure the rest of their financing is ready. In a competitive California housing market, that can create unnecessary problems. Your income and assets still need to be documented. Your loan approval needs to remain current. Your

A funny thing happens when people think about buying a home. They believe they need everything figured out first. Perfect credit. Perfect savings. Perfect timing. Perfect certainty. Almost nobody has all of those things. The buyers who ultimately succeed are usually the ones who start the conversation before they feel completely ready. Not because they're reckless. Because they're curious. They want to know: What would it take to qualify? How much down p

TIC properties are becoming a bigger part of the conversation in California real estate. That's especially true in expensive housing markets where buyers are looking for alternatives to traditional condominiums and single-family homes. But there's one mistake I see buyers make repeatedly. They assume financing a TIC works like financing a condo. It doesn't. A Tenancy in Common has a different ownership structure. Instead of owning an individual unit with a separate ti

If you only follow housing headlines, you might think there are no good opportunities for buyers right now. Home prices are still high. Mortgage rates remain a major affordability concern. And many buyers are frustrated. But that’s not the entire story. We’re also seeing something that was almost nonexistent during the housing frenzy a few years ago. Negotiation. Buyers Have More Leverage Than They Did a Few Years Ago During the peak housing market, sellers ha

One of the biggest reasons people delay buying a home is simple. They think they need more money. A lot more money. I still talk to buyers who believe they need 20% down before they should even consider purchasing a home. On a $700,000 house, that would mean saving $140,000. For most families, that's a pretty intimidating number. The good news? Many buyers don't need anywhere close to 20% down. There Are Low Down Payment Mortgage Options Depending on the buy

It's one of the biggest financial decisions most people will ever make. Should I keep renting... or is it finally time to buy a home? There's no one-size-fits-all answer. But there are a few questions everyone should ask before deciding. Renting Isn't Throwing Money Away Let's get one myth out of the way. Renting isn't automatically a bad financial decision. If you're planning to move in the next year or two, paying off debt, building your emergency fund, or sav

The Self-Employed Mortgage Mistake That Starts at Tax Time One of the biggest misconceptions among self-employed borrowers is that qualifying for a mortgage starts when you submit an application. In reality, it often starts months earlier—when you file your tax return. Most business owners work hard to reduce their taxable income. That's smart tax planning. But when it's time to buy a home, those same write-offs can make it look like you earn less than you actually do. That's

One of the biggest misconceptions I hear is: "I'll wait until my credit score is perfect before I buy." The truth? You don't need a perfect credit score to become a homeowner. In fact, many buyers qualify much sooner than they expected. There Isn't One Magic Credit Score People often ask me, "What's the minimum credit score to buy a home?" The answer depends on the loan program. Different mortgage programs have different guidelines, and your credit score is

One of the most frustrating myths I still hear is that VA offers can't compete. As someone who works with veterans regularly, I can tell you that's simply not true. The loan isn't the problem. Preparation is. When a buyer is fully underwritten, documentation is complete, and the lender communicates proactively with the listing agent, a VA offer can be just as strong as any other financing. Unfortunately, some agents still carry misconceptions based on experiences fr

Most people start the home buying process the same way. They open Zillow. They scroll through listings. They find a home they love. Then they wonder... "Can I actually afford it?" That's backwards. A Mortgage Pre-Approval Gives You Clarity One of the biggest advantages you can have as a buyer is knowing exactly where you stand before you start touring homes. A mortgage pre-approval helps you understand: Your realistic price range Your estimated monthly pay