One of the most common myths in homebuying is that you need a 20% down payment to purchase a home. While putting 20% down does have its benefits—such as avoiding private mortgage insurance (PMI)—it’s far from a requirement for most buyers.

In fact, data shows that the median down payment for first-time homebuyers is just 9%. Many home loan programs are designed to make homeownership more accessible and allow for significantly lower down payments. Depending on the loan type you qualify for, you might be able to purchase a home with as little as 3.5% down—or even 0% in some cases, such as VA or USDA loans.

So why does the 20% myth persist? It’s partly due to outdated assumptions and partly because many buyers aim for that number to avoid PMI. But the reality is, waiting to save 20% could delay your opportunity to buy, especially in a market where prices continue to rise. In many cases, it makes more financial sense to buy sooner with a smaller down payment and start building equity.

The Bottom Line:
You may be closer to owning a home than you think. If you’ve been holding off because you haven’t saved 20%, it’s time to explore your options. Connect with a trusted lender to discuss the loan types available to you and determine what makes the most sense for your financial situation.

Ready to take the next step?

Contact The Stewart Team today to be connected with one of our preferred lenders and start your journey toward homeownership with confidence.