Home Buyers Don't NEED 20% Down to Buy a House


One of the biggest misconceptions about homebuying is the need for a 20% down payment.

Perspective home buyers, specifically first-time home buyers, are put off and don’t even look for homes because they think they need to save a minimum of 20% of a price for a home. Although this could be good practice, there are so many programs that can assist with your down payment. This allows for people to still purchase a home with less money saved if that is the right move for them.

Example of programs that can assist with cheaper down payment are government programs:

FHA – This program allows for you to have a down payment for as low as 3%, depending on other qualifications.

VA – This programs allows veterans to purchase a home with 100% home financing.



In my personal experience working with first time home buyers, I’m finding a lot of times parents or close relatives are gifting money, or buyers are allocating expenses from events to afford the down payment.

In the recent past, I had a client who was a first-time home buyer with very little down payment and trying to compete with investors who were paying all cash. Needless to say, in the competitive market, they didn’t have a chance. When my client told their parents, they quickly gifted cash to my client which allowed for them to then qualify for a home they really wanted. My client was able to purchase the home and they joyfully celebrated.

It has also become popular for couples who are planning to get married to forgo expensive events and save the money for a home, or set an online funding account for guests to contribute to their down payment instead of a registry.

There are many resources that can help you purchase a home if that is what you want. Speaking to a real estate agent and lender is always a great first step in seeing what you can afford and how to proceed with your home buying process.

Please feel free to contact me if you have any questions regarding down payments, or would like to take advantage of my reliable network in the real estate industry.

Suzanne Volkman (916) 773-1028