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The single biggest myth I run into with first-time buyers: "I need 20% down or I can't buy a house."

Not true. Hasn't been true for a long time. Here's what's actually out there.

The Real Options

If you want the full breakdown of the two most common lower-down-payment options, I've written separate guides on how FHA loans work and how VA loans work for eligible veterans.

What 20% Down Actually Gets You

No private mortgage insurance, and a lower monthly payment. That's real. So it's not that 20% is required, it's that it's one option with tradeoffs, not the only door in. If you have the 20% and it doesn't stretch your other savings too thin, it can be a smart move. If you don't, that doesn't mean you're stuck renting.

The Question That Actually Matters

The real question isn't "how do I get to 20%." It's "what's the smartest way for me to get into a home given what I actually have saved right now."

That's a conversation worth having before you assume you're not ready. A lot of people are closer than they think, especially once you factor in FHA's 3.5% minimum, VA's zero-down benefit for eligible veterans, or a California assistance program that could cover part of the gap.

Run Your Numbers Before You Rule Yourself Out

I see this constantly: someone assumes they're years away from buying because they're mentally anchored to a 20% number that was never actually required. Then we sit down, look at their actual savings and income, and the timeline shrinks dramatically once the right loan type is on the table.

Want to see what a $0-down purchase actually looks like in practice? I broke down a recent VA loan deal in this case study, the buyer closed with nothing out of pocket and money back at the table.

Common Questions

Do you need 20% down to buy a house?
No. That hasn't been a requirement for most buyers in a long time. Conventional loans can go as low as 3% down for qualified buyers, FHA loans start at 3.5%, and VA loans can mean 0% down for eligible veterans.
What is the benefit of putting 20% down?
Putting 20% down avoids private mortgage insurance and results in a lower monthly payment. It's one option with real advantages, but it's not the only path into homeownership.
Are there down payment assistance programs in California?
Yes. California has several down payment assistance programs specific to first-time buyers that many people don't know exist. Eligibility and availability change, so it's worth discussing your specific situation with an agent or lender.

Want to Run Your Numbers?

Happy to walk through it, no obligation. Let's figure out what's actually possible given what you have saved right now.

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