Saving up to buy a home can feel a little intimidating, especially right now. And for many first-time buyers, the idea that you have to put 20% down can feel like a major roadblock.
But that’s actually a common misconception. Here’s the truth.
Unless your specific loan type or lender requires it, odds are you won’t have to put 20% down. There are loan options out there designed to help first-time buyers like you get in the door with a much smaller down payment.
For example, FHA loans offer down payments as low as 3.5%, while VA and USDA loans have no down payment requirements for qualified applicants, like Veterans. So, while putting down more money does have its benefits, it’s not essential. As The Mortgage Reports says:
“. . . many homebuyers are able to secure a home with as little as 3% or even no down payment at all . . . the 20 percent down rule is really a myth.”
According to the National Association of Realtors (NAR), the median down payment is a lot lower for first-time homebuyers at just 9% (see chart below):
The takeaway? You may not need to save as much as you originally thought.
And the best part is, there are also a lot of programs out there designed to give your down payment savings a boost. And chances are, you’re not even aware they’re an option.
Believe it or not, almost 80% of first-time homebuyers qualify for down payment assistance (DPA), but only 13% actually use it (see chart below):
That’s a lot of missed opportunity. These programs aren’t small-scale help, either. Some offer thousands of dollars that can go directly toward your down payment. As Rob Chrane, Founder and CEO of Down Payment Resource, shares:
“Our data shows the average DPA benefit is roughly $17,000. That can be a nice jump-start for saving for a down payment and other costs of homeownership.”
Imagine how much further your homebuying savings would go if you were able to qualify for $17,000 worth of help. In some cases, you may even be able to stack multiple programs at once, giving what you’ve saved an even bigger lift. These are the type of benefits you don't want to leave on the table.
Saving up for your first home can feel like a lot, especially if you’re still thinking you have to put 20% down. The truth is that’s a common myth. Many loan options require much less, and there are even programs out there designed to boost your savings too.
To learn more about what’s available and if you’d qualify for any down payment assistance programs, talk to a trusted lender.
Check out the latest articles on real estate trends.
Lifestyle
Exploring What Makes Atlanta One of the South’s Most Dynamic Cities
Lifestyle
Exploring What Makes Atlanta One of the South’s Most Dynamic Cities
Real Estate
Getting Your Home Price Right Could Be the Key to Your Next Chapter
Lifestyle
From Atlanta’s hidden forest escapes to the scenic mountain paths of Blue Ridge, discover Georgia’s most breathtaking hiking destinations.
Real Estate
Boost Your Home Sale with Innovative Virtual Tour Strategies
Real Estate
How forgotten second mortgages from the 2000s housing crisis are coming back to haunt homeowners—and what you can do to protect yourself.
Real Estate
Understanding the link between the 10-year Treasury yield, economic stability, and what it means for your mortgage rate in 2025–2026.
Lifestyle
From vineyard festivals to haunted dining experiences, discover the top fall adventures that make Atlanta come alive this season.
Address
3107 Peachtree Rd NE A-1
Atlanta GA 30305
