Saving up to buy a home can feel intimidating, especially now. And for many first-time buyers, the idea that you have to put 20% down can feel like a significant roadblock.

But that’s a common misconception. Here’s the truth.

Do You Have to Put 20% Down When You Buy a Home?

Unless your specific loan type or lender requires it, you won’t have to put 20% down. There are loan options designed to help first-time buyers like you get in the door with a much smaller down payment.

For example, FHA loans offer down payments as low as 3.5%, while VA and USDA loans have no down payment requirements for qualified applicants, like Veterans. So, while putting down more money does have its benefits, it’s not essential. As The Mortgage Reports says:

“. . . 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.”

According to the National Association of Realtors (NAR), first-time homebuyers’ median down payment is much lower at just 9% (click here to view the chart).

The takeaway? You may not need to save as much as you initially thought.

The best part is that there are also a lot of programs out there designed to boost your down payment savings. And chances are, you’re not even aware they’re an option.

Why You Should Look into Down Payment Assistance Programs

Believe it or not, almost 80% of first-time homebuyers qualify for down payment assistance (DPA), but only 13% use it (see chart below).

Most first-time homebuyers qualify for down payment assistance – Download Graph

That’s a lot of missed opportunities. These programs aren’t small-scale help, either. Some offer thousands of dollars that can go directly toward your down payment. As Rob Chrane, Founder and CEO of Down Payment Resource, shares:

“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.”

Imagine how much further your homebuying savings would go if you qualify for $17,000 worth of help. In some cases, you may even be able to stack multiple programs at once, giving what you’ve saved an even bigger lift. These are the types of benefits you don’t want to leave on the table.

What Real Estate Experts Are Saying: Bottom Line

Saving up for your first home can feel like a lot, especially if you still think you must put 20% down. The truth is that’s a common myth. Many loan options require much less, and there are even programs designed to boost your savings, too.

Talk to a trusted lender to learn more about what’s available and whether you qualify for down payment assistance programs.