One of the Most Common Buyer Misconceptions…
“I need 20% down to buy a home.”
This stops a lot of buyers before they even start exploring.
But the reality?
Many buyers purchase homes with far less.
The Short Answer
No — 20% down is not required for most buyers.
Depending on the loan type, some buyers purchase with:
- 3% down
- 3.5% down
- 5% down
- or even 0% down for certain loan programs
Why People Think 20% Is Required
Because putting 20% down can help:
- avoid PMI (private mortgage insurance)
- reduce monthly payments
- improve loan terms
But it’s absolutely not the only option.
What Actually Matters More
Lenders also look at:
- Credit score
- Income stability
- Debt-to-income ratio
- Cash reserves
Your full financial picture matters more than one number.
What Buyers Should Still Plan For
Even with a lower down payment, you’ll still want funds for:
- Due diligence fee
- Earnest money deposit
- Closing costs
- Moving expenses
This is why planning ahead matters.
💡 Pro Tip
Sometimes keeping more cash in savings is actually the smarter move instead of putting every dollar toward a down payment.
What This Means for You
If you’ve been waiting because you thought you needed 20% down:
You may have more options than you realize.
👉 Start Here:
A great first step is understanding what homes are available within your comfort range and what financing options could make sense for you.
🔗 INTERNAL LINKING
- NC Buyer Guide
- How Do You Know If You’re Ready to Buy a Home?
- Is It Better to Buy Now or Wait in Wilmington, NC?
🔹 FAQ SECTION
Can you buy a home with less than 20% down?
Yes. Many loan programs allow buyers to purchase with much smaller down payments.
What happens if you put less than 20% down?
You may have PMI (private mortgage insurance), depending on the loan type.
Is putting 20% down better?
Sometimes—but not always. It depends on your financial goals and comfort level.
What’s the minimum down payment for first-time buyers?
It varies by loan program, but some options start as low as 3% down.