"I Don't Have 20% Down" — Here's What No One Tells First-Time Buyers

One of the biggest myths floating around out there is that you need a full 20% down payment to buy a home. I hear it all the time from first-time buyers who've been saving for years, convinced they're nowhere close to ready. The truth? Most of my clients put down way less than that — and they're happily in their homes right now.

Here's a quick look at what's actually available:

•       FHA Loans — You can get into a home with as little as 3.5% down, and FHA is flexible on credit scores too. If your score is in the 580–620 range, this is often the go-to option.

•       Conventional Loans — Some conventional programs allow as little as 3% down for first-time buyers. Yes, you'll pay PMI (private mortgage insurance), but that can be removed once you hit 20% equity.

•       VA Loans — If you've served in the military, this is hands down one of the best mortgage products out there. Zero down, no PMI, and competitive rates.

•       USDA Loans — Buying in a rural or suburban area? You might qualify for a zero-down USDA loan. More areas qualify than you'd think.

•       Down Payment Assistance Programs — Minnesota has some great state and local programs that can help bridge the gap. These are often first come, first served, so it pays to ask early.

The bottom line: don't let the 20% myth keep you renting when you could be building equity. Let's talk about what you actually need to get started — it might be sooner than you think.

Ready to find out what you qualify for? Reach out and let's run the numbers together.