Think You Need 20% Down? The Truth About Buying Your First Home

One of the biggest myths keeping renters from becoming homeowners is the idea that you need 20% down to buy a house. For many, that number feels impossible and it stops people from even exploring their options.

But here’s the truth: most buyers today put far less down, and with the right programs, you could become a homeowner with as little as 3% sometimes even less. Where Did the 20% Myth Come From?

Traditionally, lenders preferred 20% down because it lowered their risk. But the housing market has changed. Today, there are dozens of programs designed to make homeownership more accessible — especially for first-time buyers.

How Much Do Buyers Actually Put Down?

According to recent housing reports:

The average first-time buyer puts down just 6–7%.

Many buyers use grants or down payment assistance to reduce that even further.

Only about 1 in 5 buyers actually put down a full 20%.

The Problem With Waiting for 20%

Saving for a large down payment can take years — and during that time, home prices and interest rates may rise. By the time you save 20%, the cost of buying may have increased more than if you had purchased earlier with a smaller down payment.

Down Payment Assistance Programs You Should Know

There are local, state, and national programs that can help cover part of your down payment or closing costs. These include:

First-time buyer grants (income-based or area-specific).

Low down payment loan options (like FHA loans with as little as 3.5% down).

Closing cost assistance programs from lenders or state agencies.

The key is knowing which ones you qualify for — and that’s where guidance makes the difference.

Example

"We thought homeownership was years away. Jerard showed us programs that allowed us to buy with just 3% down. We closed on our home in less than 60 days." – David & Angela T

What This Means for You

If you’ve been holding off on buying because you think you need 20%, it’s time to take a second look. The path to owning your first home might be much closer than you think.

Next Steps

Don’t let myths stop you from your future. Homeownership is possible often sooner than you think.