How You Can Make a Smaller Down Payment

How You Can Make a Smaller Down Payment

  • D’Ann Melnick
  • 04/29/22

Here are a few ways you can put less than 20% down on a home.

How much money do you need for a down payment? If you ask your grandparents, they’ll probably say 20%. That’s certainly the gold standard, but it’s not always possible for people, nor is it a requirement in our market. The true answer depends on your qualifications and the loan type you are using, but it is almost always less than you might think.

Putting down 20% lets you do a conventional loan with no mortgage insurance. However, you don’t need 20% to do that. Many of my clients can get a conventional loan with only 3% to 5% down using some of my preferred lenders. Some programs out there let you qualify for the best rates with a lower down payment. With the Home Possible program, you can even avoid paying for mortgage insurance.

“20% down isn’t always possible for people, and it’s not a requirement in today’s market.”

An FHA loan is another loan type that comes with a low down payment. With these, the requirement is only 3.5%. It also works well for buyers who don’t have a great credit score. FHA loans require mortgage insurance, but they can still be a great option.

Zero-down loans are the final loan type. There are a few programs out there that will let you put zero down, but the most traditional are VA loans. If you’ve served in our military, you qualify for VA loans, and you should take advantage of them. However, you should work with a Realtor and lender who have a lot of experience with VA loans. They can be challenging in competitive situations like our market.

How much do you need for a down payment? I’d be happy to chat about it. Give me a call, and I can hook you up with one of my preferred lenders. Together, we can create a perfect game plan for your home-buying process.


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D’Ann Melnick has worked in the real estate industry for more than 20 years and has amassed a renowned class of clientele and unmatched experience.

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