Saving up for a home can definitely feel a bit overwhelming—especially these days. And if you're a first-time buyer, hearing that you need to put 20% down might seem like a huge hurdle.

 

But that’s actually a pretty common misunderstanding. Here’s what’s really going on.

 

Unless your loan or lender specifically asks for it, you probably won’t need to put 20% down. In fact, there are plenty of loan options out there that are built to help first-time buyers like you get started with a much smaller down payment.

 

For example, FHA loans let you put as little as 3.5% down, and if you qualify for a VA or USDA loan—like many Veterans do—you might not need a down payment at all. Sure, putting more money down can have its perks, but it’s definitely not a must. Like The Mortgage Reports puts it:

 

“. . . 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 are actually putting down way less than you might think—the median down payment is just 9% (check out the chart below).

 

 

 

The best part? There are tons of programs out there that can help give your down payment savings a boost—and odds are, you might not even know they exist.

 

Believe it or not, nearly 80% of first-time homebuyers qualify for down payment assistance—but only 13% end up using it (see the chart below).

 

 

That’s a huge missed opportunity. And these programs aren’t just small perks—some offer thousands of dollars to help cover your down payment. As Rob Chrane, Founder and CEO of Down Payment Resource, explains:

 

“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 homebuying savings could go if you qualified for something like $17,000 in assistance. And in some cases, you can even combine multiple programs to give your savings an even bigger boost. These are the kinds of perks you definitely don’t want to miss out on.

 

Saving for your first home can feel overwhelming, especially if you’re still thinking you need to put 20% down. The truth is, that’s a common myth. Many loan options ask for way less, and there are even programs that can help give your savings a boost.

 

To find out more about what’s available and whether you qualify for any down payment assistance programs, it’s a good idea to chat with a trusted lender.