For many aspiring homeowners, saving for a down payment feels like the biggest hurdle to buying a home. And one of the most common myths holding buyers back is the idea that you must put 20% down.

The truth? You can often buy a home with far less—sometimes even no money down—depending on the loan program and your qualifications.

Do You Really Need 20% Down?

Unless your lender or loan type specifically requires it, you’re not locked into a 20% down payment. In fact, many first-time buyers use much smaller percentages. Here are a few examples:

• FHA Loans – Minimum down payment of 3.5%
  
  
• VA Loans – 0% down for eligible veterans and service members
  
  
• USDA Loans – 0% down for qualified buyers in eligible rural areas
  
  
• Conventional Loans – Some programs allow as little as 3% down
  
  

As The Mortgage Reports explains:

“Many homebuyers are able to secure a home with as little as 3% or even no down payment at all … the 20 percent down rule is really a myth.”

According to the National Association of Realtors (NAR), the median down payment for first-time buyers is only 9%—less than half the perceived 20% requirement.

How Down Payment Assistance Can Help You Buy Sooner

Here’s where it gets even better: there are hundreds of Down Payment Assistance (DPA) programs across the country designed to help buyers cover part—or sometimes all—of their down payment.

• Nearly 80% of first-time buyers qualify for some form of assistance
  
  
• Only 13% actually take advantage of it
  
  
• The average benefit is about $17,000, according to Down Payment Resource
  
  

That’s money you don’t have to save yourself—money that could help you buy a home sooner, keep more cash in your emergency fund, or cover closing costs and moving expenses.

In some cases, you may even be able to combine multiple programs, further reducing the amount you need to bring to the table.

Why the 20% Myth Persists

The 20% number isn’t completely without merit—it comes from the fact that if you put down less than 20% on most loans, you’ll likely need to pay Private Mortgage Insurance (PMI). PMI is an added cost, but it’s often well worth it if it means you can enter the market earlier and start building equity instead of continuing to rent.

Over time, you can refinance or pay down your loan enough to remove PMI, leaving you with the benefits of homeownership and no extra insurance cost.

The Bottom Line

You don’t need to wait until you’ve saved 20% to buy a home. Many loan programs require much less, and down payment assistance can make it even easier to get started.

If you’re serious about buying, talk to a trusted lender or real estate professional. They can:

• Review your loan options
  
  
• Identify assistance programs you may qualify for
  
  
• Show you how much you really need to save
  
  

Don’t let a myth keep you from your dream home. The first step is getting the facts—and the right team on your side.