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Do I need 20% down to buy a home?

The short answer

Often, no. Many loan programs allow a smaller down payment, and some eligible buyers may qualify for very low or no down payment options. Putting down less than 20% usually means paying mortgage insurance, so the right amount depends on your budget, savings, and goals.

Options to ask about

  • Conventional loans with smaller down payments
  • FHA loans, which have flexible requirements
  • VA loans for eligible veterans and service members
  • USDA loans for eligible properties and buyers
  • Down payment assistance programs, especially for first-time buyers

The tradeoff: mortgage insurance

With less than 20% down, most loans include mortgage insurance. It adds to your monthly payment, but on some loans it can be removed later as you build equity.

Don't empty your savings

Keep money set aside for closing costs, moving, and life's surprises. A slightly smaller down payment can be the smarter move.

The bottom line

Don't assume you need 20% before you start looking. Let's look at your numbers together first.

This is general information, not financial advice or a commitment to lend. All loans are subject to credit approval, and programs vary by lender and eligibility.

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