Do You Need 20% Down? (Spoiler: Nope!)
One of the biggest myths in homebuying is that you need a 20% down payment to buy a house. While putting down 20% does have its benefits, like avoiding PMI, it’s far from a requirement. In fact, many buyers put down much less.
First-time homebuyers often use FHA loans that require as little as 3.5% down. VA and USDA loans even offer 0% down options for qualifying buyers. Even conventional loans can start at 5% down and sometimes go as low as 3% for those who qualify.
Of course, a higher down payment can lower your monthly mortgage and reduce interest paid over time. But waiting years to save 20% might mean missing out on low interest rates or homeownership altogether.
The truth? It’s more important to be financially ready overall than to hit an arbitrary down payment number. You have more options than you think. Contact your Ellason Loan Originator today for more information.
