First Time Home Buyer Down Payment: How Much Do You Really Need?
- By Jim Blackburn
- on
- Buy A House, Down Payment Assistance, FHA Loans, First-Time Home Buyer, VA Loans
Worried You Need 20% Down? Here’s the Real Deal.
If you’ve heard that you have to put 20% down to buy a home, you’re not alone—and you’re also not quite right. The idea of needing a huge pile of cash stops a lot of people from even trying. But the truth is, there are flexible, first-time-friendly options out there—and we’re here to break them down.
Here are 3 things you really need to know about down payments.
1. Yes, 20% Down Is the Gold Standard—But Not Required
Putting 20% down has real perks: it helps you avoid PMI (private mortgage insurance), builds instant equity, and often leads to better loan terms. But it’s not a requirement. In fact, most first-time buyers don’t put down 20%. So don’t let that number scare you off.
Most first-time buyers use low down payment options. Calculate what you can afford with our FHA Purchase Loan calculator (3.5% down) or Conventional Purchase Loan calculator (as low as 3% down).
2. FHA & Low Down Payment Loans Make Buying More Accessible
Good news: there are low down payment options like FHA loans, which let you buy a home with as little as 3.5% down. Conventional loans can even go as low as 3% down in some cases. Just remember—if you put down less than 20%, PMI will apply, so factor that into your monthly payment.
See exactly what PMI costs and how it affects your payment using our FHA Purchase Loan or Conventional Purchase Loan calculator. If you’re a veteran, check our VA Purchase Loan for 0% down options.
3. Save Smart—Not Just for the Down Payment
Your down payment isn’t the only upfront cost. You’ll also need money for closing costs, moving expenses, and a small emergency cushion. Planning for these extras helps you avoid getting stretched too thin once you move in. It’s not just about getting the keys—it’s about keeping your peace of mind, too.
Use our loan calculators to estimate not just your down payment but also closing costs and monthly payments so you can budget for the complete picture.
Want to Know Exactly How Much You Need to Buy?
You probably need less than you think. Here’s how to find out:
💰 Calculate 3.5% down options with the FHA Purchase Loan calculator
🏡 Explore 3% down with our Conventional Purchase Loan calculator
🎖️ Check 0% down eligibility with the VA Purchase Loan if you’re military or a veteran
📚 Learn all your options at our buy a house page
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