One of the biggest roadblocks for many aspiring homebuyers is saving for the down payment. It’s common to think you need 20% down to buy a home — but that’s actually a widespread misconception.

The truth? While putting 20% down can be helpful, it’s not a requirement. In fact, most buyers put down much less. And understanding this could bring you closer to homeownership than you realize.

You Don’t Need 20% Down

Yes, putting 20% down helps you avoid private mortgage insurance (PMI), and it can lower your monthly payment. But it’s not the only way to buy a home.

There are many loan programs today that require far less up front. For example:

  • Conventional loans: as low as 3% down.

  • FHA loans: typically 3.5% down.

  • VA and USDA loans: 0% down for eligible buyers.

So if you’ve been holding off your home search because you think you need to save tens of thousands of dollars, you might not have to.


What Buyers Are Actually Putting Down

Let’s take a look at the real numbers from the National Association of Realtors (NAR):

  • First-time buyers: average down payment = 8%

  • Repeat buyers: average down payment = 19%

This means that even repeat buyers aren’t always hitting that 20% mark — and most first-time buyers are putting down far less.

These averages show that putting down less than 20% is not just possible — it’s common. You’re not alone, and you’re not doing it wrong.


Why the 20% Myth Persists

The 20% rule used to be the norm decades ago, and some buyers still believe it’s a requirement. Others may assume that putting down less means they won’t qualify for a loan — but that’s not the case.

Mortgage lending has evolved, and so have the options available to today’s buyers.


Assistance Is Available

If you're concerned about saving for a down payment, you're not alone — and there’s help out there.

There are hundreds of state, local, and national assistance programs designed to help with down payment and closing costs. Many first-time buyers may qualify without even realizing it.

An experienced real estate agent or lender can help you explore these programs and identify what fits your needs and eligibility.


Conclusion

You don’t need to wait until you have 20% saved. With average down payments closer to 8% for first-time buyers — and so many financing options available — the path to homeownership could be more within reach than you think.

Take the first step by speaking with a trusted expert who can help you understand your financing options and what’s possible for you, today.