Where Did the 20% Myth Come From?

Years ago, putting 20% down was often viewed as the gold standard.

A larger down payment can:

• Reduce your monthly mortgage payment.

• Lower your loan-to-value ratio.

• Eliminate private mortgage insurance (PMI) on many conventional loans.

• Increase equity from day one.

Those are real benefits.

But somewhere along th

e way, many people began believing it was a requirement.

For most buyers, it isn't.

Today's Mortgage Programs Offer More Flexibility

Modern lending offers several paths to homeownership, depending on your financial situation.

Some buyers may qualify for conventional financing with as little as 3% down.

FHA financing may allow qualified borrowers to purchase with 3.5% down.

Eligible veterans may qualify for VA financing with no down payment.

There are also down payment assistance programs available in many areas that can

help bridge the gap for qualified buyers.

The right program depends on your goals, income, credit profile, and long-term plans.

More Money Down Isn't Always

the Best Financial Decision

Many buyers assume they should empty their savings account just to avoid mortgage

insurance.

Sometimes that's the right move.

Sometimes it isn't.

Keeping additional cash available for:

• Emergency saving

• Home improvements

• Furniture

• Unexpected repairs

• Future investments

may provide greater financial flexibility than putting every available dollar into the down payment.

The goal isn't simply putting the most money down.

The goal is building a strong overall financial position.

Don't Let a Down Payment Delay Your Future

I've met buyers who spent years trying to save 20% while home prices continued to rise.

By the time they reached their savings goal, the homes they wanted had become significantly more expensive.

Every market is different.

No one can predict future home prices or interest rates with certainty.

But waiting because of incorrect information can sometimes become more costly than exploring your options today.

The Best Strategy Is the One Built Around You

There is no universal answer to the question, "How much should I put down?"

For one buyer, 20% may make perfect sense.

For another, 10% may be ideal.

For someone else, purchasing with 3% or 3.5% down could allow them to become a

homeowner years earlier while still maintaining healthy savings.

That's why every mortgage strategy should begin with a conversation—not

assumptions.

Start With a Plan, Not a Myth

One of the most valuable conversations I have with prospective buyers isn't about interest rates.

It's about understanding what's actually possible.

You don't need to guess.

You don't need to rely on advice from social media or outdated information from years

ago.

A personalized mortgage strategy can help you understand your options and make

decisions based on facts instead of myths.

If buying a home is on your radar over the next year, the best time to start planning is now.

Frequently Asked Questions

Do I need a 20% down payment to buy a house?

No. Many qualified buyers purchase homes with much less than 20% down, depending

on the loan program and their financial profile.

Is putting 20% down still a good idea?

It can be. A larger down payment may reduce your monthly payment and eliminate PMI on many conventional loans. However, it isn't automatically the best strategy for everyone.

What is the minimum down payment for a home?

The minimum down payment varies by loan program and borrower qualifications. Some conventional loans may allow as little as 3% down, FHA loans may allow 3.5% down, and eligible VA borrowers may qualify for 0% down.

Should I wait until I save 20%?

Not necessarily. The right time to buy depends on your overall financial situation, goals, and available financing options—not a single down payment percentage.