If you’ve been putting off buying a home because you think you need 20% down, let’s clear something up right away:

You don’t.

This is one of the biggest myths in homebuying, and it stops a lot of great buyers from ever getting started. The truth is, there are multiple down payment options—especially for first-time homebuyers—that can make buying a home far more achievable than you think.

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🧠 Where the 20% Myth Comes From

The idea of needing 20% down usually comes from wanting to avoid private mortgage insurance (PMI). While that can be a benefit, it’s not a requirement to buy a home—especially a primary residence.

Waiting years to save 20% can sometimes cost more than buying sooner, particularly as home prices and rents continue to rise.

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💰 Common Down Payment Options

Here are a few of the most common down payment options buyers use today:

🔹 Conventional Loans (As Low As 3% Down)

Many conventional loan programs allow qualified buyers to put as little as 3% down. These are popular with first-time buyers who have solid credit and stable income.

🔹 FHA Loans (3.5% Down)

FHA loans are designed to be more flexible and accessible, especially for buyers with limited savings or lower credit scores. The minimum down payment is 3.5%, making homeownership more attainable for many.

🔹 VA Loans (0% Down)

For eligible veterans, active-duty service members, and certain military spouses, VA loans offer 100% financing—no down payment required. It’s one of the most powerful benefits available to those who qualify.

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🎁 First-Time Homebuyer Grants (Yes, Free Money)

One of the best-kept secrets in homebuying is down payment assistance and grant programs.

If you’re a first-time homebuyer, you may qualify for:

• Grants that help cover down payment or closing costs
• Forgivable assistance programs
• Local or state housing initiatives

These programs can significantly reduce the amount of cash you need upfront. Eligibility depends on factors like income, location, and purchase price, which is why it’s important to talk with a lender early.

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💸 Why Draining Your Savings Isn’t the Goal

Even if you can put more money down, it’s not always the best move.

After you close, you’ll still need money for:

• Repairs and maintenance
• Furniture and upgrades
• Emergency expenses

A smart plan balances your down payment and your financial safety net. Owning a home feels a lot better when you’re not financially stretched.

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🏡 Final Thoughts

Buying a home isn’t about hitting an arbitrary down payment number—it’s about choosing the option that fits your financial goals and lifestyle.

You don’t need 20% down to become a homeowner. You just need the right plan, the right loan, and the right guidance.

If you’re thinking about buying a home in the Richmond area and want to explore what options are available to you—including first-time buyer grants—I’m always happy to have that conversation.

CJ Sweat
Mortgage Loan Officer | Richmond, VA NMLS: 1200574