The 20% down payment myth keeps a lot of would-be buyers on the sidelines longer than necessary. Most first-time buyers put down far less: according to the National Association of Realtors, the median down payment for first-time buyers has hovered around 8% in recent years.
Median from the National Association of Realtors.
A smaller down payment gets you into a home sooner, but it comes with trade-offs. You'll likely pay private mortgage insurance (PMI) until you reach 20% equity, and your monthly payment will be higher because the loan is larger. A bigger down payment cuts the loan size, lowers the monthly payment and may earn better rates.
The right number isn't the biggest you can scrape together.
It's the amount that lets you buy confidently while keeping an emergency fund and moving-in reserves intact.
First mortgage? Compare FHA, VA, and conventional loans side by side to find the right fit for your credit, savings, and homeownership timeline.
Private mortgage insurance can add $100 to $300 to your monthly payment. Here are three ways to cancel PMI and put that money back in your budget.
Closing costs run 2–5% of your loan amount. See the full breakdown of fees, plus four proven ways to lower what you pay at the closing table.
A loan officer can match your savings to the programs you qualify for and show the monthly payment at each down payment. Pre-qualifying will not affect your credit score.
Pre-qualify