Mortgage Myth #2 — You Need 20% Down to Buy a Home
Michael Creed • July 7, 2025
Fact: You can often buy a home with zero money down.
It’s time to debunk one of the most damaging myths in real estate: the 20% down rule.
The Myth: “You need 20% down to buy a home.”
Why It’s Wrong: That belief is based on outdated financial advice. While 20% down can help avoid mortgage insurance, it’s absolutely not required. And, in fact, the act of saving for that 20% down can cost you real money as home values continue to rise.
The Truth
- VA Home Loans - Down payments* as low as 0%
- USDA Rural Housing - Down payments* as low as 0%
- FHA Home Loans - Down payments* as low as 3.5%
- Conventional Financing - Down payments* as low as 3% (some 5%)
- Non-QM (alternate-income) - Down payments* as low as 10–15%
- WHEDA, Chenoa Fund, Luminate Path and more also offer down payment assistance, making a buyer's at-closing cash demands even lower for those who qualify.
*Down payment amount will vary based on program eligibility, credit score, and other factors
Modern lending opens doors for all kinds of buyers. Credit, income, and assets all play a role — not just a giant pile of cash.
Who This Helps
- First-time buyers
- Veterans
- Rural families
- Buyers with solid income but limited savings, or the other way around in the case of the Non-QM Options
- People told “no” by their bank or an online lender
Take Action
Know someone who’s still saving for 20%? Or gave up because they couldn’t hit that number?
→ Book a consult with our team's Pre-Approval Expert
→ Introduce us to you a contact of yours via group text (our number is 262-696-9048)
→ Download our First Time Home Buyer Guide
→ Take our Homebuyer Readiness Assessment
→ Forward this blog post
Check out the other Mortgage Myth posts
here.
Fact: You can build with as little as 0% Down
Make sure you treat this like the largest transaction of your life!
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