The 20% myth
A 20% down payment is not a universal requirement. Some conventional programs allow eligible buyers to put as little as 3% down. FHA can allow 3.5% with qualifying credit. Your income, debts, credit and the property still matter.
When zero down may be an option
Eligible veterans and service members may qualify for a VA loan. USDA financing can offer zero down on eligible properties for buyers within program income limits. Many suburban areas may qualify; check the actual address rather than assuming rural means remote.
Look beyond the down payment
Zero down does not mean no cash needed. Closing costs, prepaid insurance and taxes, moving expenses and an emergency fund all belong in your plan. Smaller down payments can also mean mortgage insurance or program fees.
Find the right fit, not just the smallest number
Compare the total monthly payment and cash to close for each option. A loan officer can help you understand the trade-offs without making you commit to a loan.
Educational information only. Guidelines and availability may change. All loans subject to eligibility, underwriting and property approval.
← Back to the journal