For years, many potential homebuyers have believed one thing:
You need a 20% down payment to buy a home.
That belief is one of the biggest reasons people delay homeownership—but it’s simply not true anymore.
The Reality: 20% Is No Longer the Standard
According to data from the National Association of Realtors, the typical down payment is much lower than 20%.
First-time homebuyers: Around 8%
All homebuyers: Around 15%
That’s a significant difference—and it opens the door for many more buyers than you might expect.
Why the Myth Still Exists
The 20% figure originally became popular because it helps buyers avoid private mortgage insurance (PMI). While that’s still true, it’s no longer a requirement to purchase a home.
Today’s loan programs are far more flexible and designed to help buyers get into the market sooner.
What This Means for You
If you’ve been holding off on buying because you thought you needed to save a massive down payment, here’s the good news:
You may be closer to buying than you think
You don’t necessarily need years of savings
There are loan options designed for lower down payments
Don’t Overlook Assistance Programs
Many buyers are surprised to learn there are homebuyer assistance programs available that can help with:
Down payments
Closing costs
Reduced loan requirements
These programs can make a huge difference—especially for first-time buyers.
The Takeaway
The idea that you need 20% down is outdated—and believing it could be holding you back from building wealth through homeownership.
You may not need as much as you think to get started.
Let’s Make a Plan
Every buyer’s situation is different. The best next step is to connect with a trusted lender and create a strategy tailored to your goals.
If you’ve been waiting on the sidelines, this might be the sign you’ve been looking for.
Homeownership could be more within reach than you realize.