Do I Really Need 20% Down to Buy a Home?

The Myth That Won’t Die

I hear it all the time

"Mike, I’d love to buy, but I don’t have 20% saved up yet."

Listen, if I had a dollar for every time someone said that, I’d have a second house in The Keys.

Here’s What You Really Need

Let’s set the record straight:

• FHA loans: Start at just 3.5% down

• Conventional loans: Many offer 3%–5% down for qualified buyers

• VA loans: 0% down (shoutout to our veterans 🇺🇸)

• First time buyer programs and local grants can help even more

Yes, 20% down has its perks.

Like avoiding PMI (Private Mortgage Insurance), having a lower monthly payment, and potentially better loan terms.

But here's the deal:

If you can put 20% down comfortably, great.

If you can’t? You’re not out of the game. Not even close.

It’s Not Just the Down Payment

When buying a home, it’s not just about the down payment. You’ve also got:

• Closing costs (usually 2–5% of the purchase price)

• PMI or MIP if putting down less than 20%

• Your monthly mortgage payment (which includes taxes, insurance, etc.)

And if you wait too long trying to save that perfect 20%, you could end up:

• Chasing higher home prices

• Dealing with rising interest rates

• Watching your buying power shrink month by month

What I’d Tell a Friend

Look, if 20% down fits your budget, go for it.

But don’t let that number be the thing that stops you from owning a home.

You’ve got options. Real ones.

If you’ve got some savings, steady income, and you're ready to make a move, talk to a lender or a trusted agent (hi, it’s me) and get the real numbers.

— Mike

Buying Soon? Let’s talk Strategy

Not sure what you actually need to buy a home?

Let’s break it down together.

No pressure. No hard pitch. Just real options and real numbers.

Let’s schedule a Down Payment Strategy Session.