The 20% Down Payment Myth, Debunked

Written By Jeremy Kilbourne

Saving for your first home can feel overwhelming—especially if you believe the myth that you must put 20% down.

❌ The 20% Down Payment Myth

Here’s the truth:
You don’t always need 20% to buy a home.

✅ FHA loans: as low as 3.5% down
✅ VA & USDA loans: 0% down for qualified buyers
✅ Conventional loans: some allow as little as 3% down

According to the National Association of Realtors, first-time buyers usually put down just 9%, not 20%.

💰 Down Payment Assistance Can Help Even More

Here’s something else you might not know:
Nearly 80% of first-time buyers qualify for down payment help... but only 13% use it. 😲

Programs can offer up to $17,000 or more to help you buy a home.
You can even combine programs to get even more support.

As Rob Chrane from Down Payment Resource puts it:

“The average DPA benefit is roughly $17,000.”

✅ Bottom Line

Don’t let the 20% myth hold you back.

  • You probably don’t need to save as much as you think.

  • There’s help available—you just have to know where to look.

Talk to a lender or real estate professional to explore your options.
Your dream of homeownership may be closer than you think.

Finding ways to make your credit score better could help you get a lower mortgage rate. When you’re ready to get the process started, let’s connect.

Jeremy Kilbourne

Jeremy is Arch Mortgage North’s Lead Loan Officer. Bringing experience, compassion and creativity to the mortgage lending process, Jeremy loves helping clients achieve their home ownership goals.

Next

The Benefits of Using Your Equity To Make a Bigger Down Payment