Saving up to buy your first home might seem like a big challenge—but the good news is, it’s more within reach than you may have imagined. One of the most common myths first-time buyers face is the belief that a 20% down payment is required. Thankfully, that’s far from the full story.

Do You Really Need a 20% Down Payment?

The idea that you must put down 20% on a home is widespread, but it’s not a rule set in stone. Unless your specific loan type or lender requires it, chances are you can buy a home with far less. There are several loan options specifically designed to help first-time buyers break into the housing market with smaller down payments.

Take FHA loans, for instance—they allow down payments as low as 3.5%. VA and USDA loans are another great option, offering zero down payment opportunities for qualifying applicants such as Veterans and eligible rural buyers. While putting more money down certainly comes with benefits, doing so isn’t always necessary. As The Mortgage Reports explains:

“. . . many homebuyers are able to secure a home with as little as 3% or even no down payment at all . . . the 20 percent down rule is really a myth.”

In fact, data from the National Association of Realtors (NAR) shows the median down payment for first-time buyers is only 9%—a far cry from 20%.

What does this mean for you? It means you likely don’t need to save as much as you thought to buy your first home.

Explore the Power of Down Payment Assistance

An even more encouraging fact? There are numerous down payment assistance (DPA) programs available to help first-time buyers bridge the gap. Despite nearly 80% of first-time buyers qualifying for these programs, only 13% actually use them. That’s a huge missed opportunity.

These programs can offer substantial support. Some provide thousands of dollars to go directly toward your down payment. As Rob Chrane, Founder and CEO of Down Payment Resource, puts it:

“Our data shows the average DPA benefit is roughly $17,000. That can be a nice jump-start for saving for a down payment and other costs of homeownership.”

Just imagine how much further your savings could go with an extra $17,000. In some cases, you may even be able to combine multiple programs, multiplying the impact and bringing your dream of homeownership even closer.

These resources are out there—and they’re designed to help you succeed.

Bottom Line

Saving for your first home doesn’t have to mean putting 20% down. That’s one of the biggest myths in real estate. With various low down payment loans and powerful down payment assistance programs available, your path to homeownership might be much more accessible than you think.

Want to learn more about your options or see if you qualify for any down payment assistance programs? Reach out to Mike Panza and the team at Panza Home Group for expert guidance and support on your journey. You can contact them here: https://panzarealestate.com/team/mike-panza