Think You Need 20% Down to Buy a Home? Think Again.

Let’s clear something up: You don’t necessarily need 20% down to buy a home.

Yep, you read that right.

One of the biggest misconceptions about buying a home is that you need a huge savings account before you can even get started. And while saving money is always a good thing, waiting until you’ve saved 20% could mean putting your homeownership dreams on hold longer than necessary.

So, how much do you actually need?

It depends on the loan program and your qualifications, but here are a few options worth knowing about:

• Conventional loans: Some programs allow as little as 3% down.
• FHA loans: Down payments can start at 3.5% for qualified buyers.
• VA loans: Eligible veterans and service members may qualify for 0% down.
• Down payment assistance: Certain programs can help eligible buyers cover some of their upfront costs.

But what about closing costs?

Great question! Your down payment isn’t the only expense to plan for. Closing costs, prepaid expenses, and moving costs can also factor into your budget.

The good news? Depending on the loan and transaction, there may be ways to reduce what you need upfront, including seller credits or assistance programs.

Here’s the takeaway.

You don’t need to have everything figured out before talking to a lender. In fact, having that conversation early can help you understand your options and create a realistic plan.

At HappyDog, we believe buying a home should feel exciting, not overwhelming. Whether you’re ready today or just starting to explore, we’re here to help you find your way home.

Ready to see what’s possible? Let’s talk.