Many buyers believe they need a 20% down payment to buy a home—but that’s not always the case. In reality, there are many loan programs designed for buyers with lower down payments, making homeownership more accessible than you might think.
Understanding Lower Down Payment Options
Depending on your qualifications, buyers may be able to purchase a home with significantly less than 20% down. These options can be especially helpful for first-time buyers or those who prefer to keep savings available for other financial goals.
What About Mortgage Insurance?
When putting less than 20% down, mortgage insurance is often required. While this adds to the monthly payment, it allows buyers to become homeowners sooner instead of waiting years to save a larger down payment.
Benefits of Putting Less Down
Enter the market sooner
Preserve cash for emergencies or home improvements
Take advantage of changing market conditions
Things to Consider
A lower down payment may mean a higher monthly payment, so it’s important to review the numbers carefully and choose a loan structure that fits comfortably within your budget.
The Bottom Line
Buying with less than 20% down can be a smart and strategic move when done thoughtfully. A lender can help you compare options and decide what works best for your financial situation.