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More Borrowers Are Putting 20% Down - Should You?

Published on May 29, 2025 | Purchasing a Home
More Borrowers Are Putting 20% Down - Should You?
More Borrowers Are Putting 20% Down - Should You?

If you're thinking about buying a home, you've probably heard you need a 20% down payment. But is that always true? Let’s take a closer look at what’s really required—and what’s possible for you.

Why 20% Is Still Popular

You might assume that large down payments are a thing of the past. But in recent years, more buyers have been putting down 20% or more. Here's why:

  • Homes are selling quickly, and a larger down payment can help your offer stand out.
  • In 2011, only 40% of buyers made a 20% down payment or more.
  • By early 2021, that number rose to 48%.
  • Even 28% of first-time buyers are now choosing to put down 20% or more.

But Most First-Time Buyers Don't Put 20% Down

While a 20% down payment has advantages, it's not the standard for everyone. In fact, the typical first-time homebuyer puts down just 7%. That’s a much more manageable amount for many people.

Why Some Buyers Choose to Put Down More

A larger down payment can benefit you by:

  • Making your offer more attractive to sellers
  • Possibly qualifying you for a lower interest rate
  • Helping you avoid private mortgage insurance (PMI)

Still, it’s not the only way to become a homeowner.

You Have Other Options

There are many loan programs designed to make buying a home more accessible:

  • Conventional loans: Some allow as little as 3% down
  • FHA loans: Require only 3.5% down
  • VA and USDA loans: May offer zero-down options if you qualify

How to Decide What’s Right for You

There’s no single answer that fits everyone. Consider your personal financial situation and long-term goals:

  • How much money have you saved?
  • How long do you plan to stay in the home?
  • What is the housing market like in your area?

Tips for Planning Your Down Payment

  • Don’t use all your savings—keep some for moving expenses and home repairs
  • Save in a high-yield savings account if you’re still building your down payment
  • Use a mortgage calculator to estimate monthly payments at different down payment levels

Is 20% Down Right for You?

Pros:

  • You’ll have lower monthly payments
  • You can avoid paying mortgage insurance
  • Your offer may be more appealing to sellers

Cons:

  • It takes longer to save
  • You might delay buying a home
  • You’ll use up more of your savings

Bottom Line

You don’t have to wait until you have 20% saved to buy a home. Many qualified buyers put down much less—and still get into homes they love.

Take the Next Step Toward Homeownership

Talk to a mortgage lender about your options. Find out what loan programs you may qualify for and decide what down payment works for your budget and goals. Buying a home is a big step, but you don’t have to do it alone.

Ready to explore your path to homeownership? Reach out today, and let’s find a down payment strategy that works for you.