How Much Down Payment Do You Really Need?

Many first-time buyers believe they need 20% down to buy a home. The truth? You have many more options.

Down Payment Options

Loan Type	Minimum Down Payment
FHA	3.5%
Conventional	3%
VA	0%
USDA	0%

The 20% Myth

While 20% down lets you avoid private mortgage insurance (PMI), it's not required. Many buyers successfully purchase homes with much less.

Pros and Cons of Lower Down Payments

Pros: - Buy sooner - Keep cash reserves for emergencies - Start building equity now

Cons: - Higher monthly payments - PMI costs - More interest over loan life

First-Time Buyer Programs

Many states offer down payment assistance programs specifically for first-time buyers. Check your local housing authority for options.