This is a super common question I get, and the good news is—you probably need less than you think. Your down payment can vary depending on the type of loan you’re using, and whether you’re a first-time buyer, military, or buying a second home. 

Here’s a quick breakdown based on the most common loan programs:  Conventional (Fannie Mae & Freddie Mac), FHA, and VA. 

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🏡 Conventional Loans (Fannie Mae & Freddie Mac) 

1. First-Time Buyers 

  • Minimum Down Payment: 3% 
  • If you haven’t owned a home in the last 3 years, you might qualify. Programs like HomeReady® and Home Possible® are great options with flexible guidelines and reduced mortgage insurance. 

2. Repeat Buyers 

  • Minimum Down Payment: 5% 

3. Second Homes 

  • Minimum Down Payment: 10% 

4. Investment Properties 

  • Usually requires 15%–25% down, depending on the type of property. 
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🧱 FHA Loans 

  • Minimum Down Payment: 3.5% 
  • Great option for buyers with lower credit scores (580 and up). 
  • These loans are backed by the government, so they’re more forgiving on credit, but they do come with mortgage insurance. 
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🇺🇸 VA Loans (For Veterans & Active Military) 

  • Down Payment: $0 
  • That’s right—VA loans don’t require a down payment at all. 
  • No mortgage insurance either, which can save you a lot over time. 

If you’re eligible for a VA loan, it’s hands down one of the best loan products out there. 

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💡 A Few Extra Things to Know 

  • If you’re putting down less than 20% on a  conventional loan, you’ll likely have  private mortgage insurance (PMI)—but that can be removed once you build enough equity. 
  • Many loans allow  gift funds from family to help with your down payment. 
  • Depending on where you’re buying, there may be  local down payment assistance programs available too. 
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🔢 Quick Example: What Could Your Down Payment Look Like? 

Home Price 3% (First-Time Buyer) 3.5% (FHA) 5% (Conventional) 10% (Second Home) 
$300,000 $9,000 $10,500 $15,000 $30,000 
$400,000 $12,000 $14,000 $20,000 $40,000 
$500,000 $15,000 $17,500 $25,000 $50,000 
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Final Thoughts 

You don’t need 20% down to buy a home—far from it. I’d be happy to help you figure out which option makes the most sense for you, based on where you’re at and what kind of home you’re looking for. Whether it’s 3%, 0%, or something in between, there’s probably a path that works for you. 

Got questions? Just reach out—I’m here to help! 

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