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Buying Tip • March 1, 2024

Down-Payments: The Facts and the Fiction

by Luke DeLacey

One of the biggest hurdles many first-time homebuyers face is coming up with a down payment. However, many don’t realize the many options available to them.

One of the biggest myths about down payments is that you need 20% of the purchase price. This is far from the truth. Here are some loan programs that allow less than 20%.

  • Conventional – as low as 3%
  • FHA – as low as 3.5%
  • Rural Development – as low as 0% but the location must qualify.
  • VA – as low as 0% but only available to veterans.

There are also a few down-payment assistance programs available that may cover some or all of your down payment. We can connect you with a lender to learn more about those or to find out if you’re eligible.

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