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

If you’ve been holding off on buying a home because you think you need 20% down, you might be missing out on some big opportunities.
The truth is — there are several loan programs that allow you to buy with much less down, and in some cases, no money down at all.

For example:

• First-time homebuyers can put as little as 3% down with conventional loan programs.
• USDA and VA loans offer 0% down payment options — both of which I help clients with regularly here in the Pittsburgh area.
• My Pathway Home Program provides a zero down, no PMI option for moderate-income buyers or homes located in qualifying census tracts.
• Even jumbo loans (for higher-priced homes) have programs that allow as little as 5% down.

So while you’re saving for that 20% down payment, home prices and interest rates could be moving against you. Waiting could actually cost you more in the long run. Check out my other article on waiting for rates to dropAttachment.png to see how appreciation and time can eat away at your buying power.
Another thing to consider — PMI (Private Mortgage Insurance) isn’t what it used to be. Years ago, PMI was expensive, which made waiting to save 20% seem like the smarter move. But in the past decade, PMI costs have dropped dramatically, making monthly payments far more affordable.

The bottom line?
You don’t need 20% down to buy a home — and by waiting, you could be missing out on equity growth and the chance to start building generational wealth sooner.
If you’re thinking about buying, let’s talk about which low or no down payment program fits your situation best.