How Much Down Payment Do I Need / Do I Qualify for Down Payment Assistance?

How Much Down Payment Do I Need / Do I Qualify for Down Payment Assistance?

Mortgage
May 02, 2025•2 min read

The Down Payment Myth

Many people still believe you need 20% down to buy a home. That’s simply not true. In today’s market, qualified buyers can purchase with far less—sometimes even zero down, depending on the loan program and eligibility.

Understanding your options is the first step toward homeownership, and you might be closer than you think.

Common Down Payment Requirements by Loan Type

  • Conventional Loans – As low as 3% down for first-time buyers.

  • FHA Loans – Typically 3.5% down, and more flexible credit standards.

  • VA Loans – 0% down for eligible veterans, active-duty service members, and surviving spouses.

  • USDA Loans – 0% down for eligible rural properties and income-qualified buyers.

So, if you're buying a $300,000 home, that could mean:

  • $9,000 down with 3%

  • $10,500 down with 3.5%

  • Or $0 down with VA or USDA

What About Down Payment Assistance?

Many state and local programs offer grants, forgivable loans, or deferred second mortgages to help with your down payment or closing costs. These are often available to:

  • First-time homebuyers

  • Low-to-moderate income households

  • Public service workers (teachers, firefighters, healthcare workers)

  • Buyers in targeted ZIP codes or revitalization zones

How Do I Know If I Qualify?

Requirements vary by program, but typically include:

  • Income limits

  • Purchase price caps

  • A minimum credit score

  • Completion of a homebuyer education course

The best way to find out? Connect with a loan officer familiar with local and national programs. They can guide you through qualification and even help structure your loan to use those funds effectively.

Search available programs here:
https://www.downpaymentresource.com/
https://www.hud.gov/buying/localbuying

Don’t Let the Down Payment Be Your Roadblock

With the right planning and the right program, the down payment doesn’t have to be the reason you delay your home purchase. And the sooner you start exploring your options, the better positioned you’ll be when the right home comes along.

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