You Don’t Need 20% Down—Here’s Why That Myth Won’t Die

Michael Delano | May 25, 2025

Let’s clear the air: You do not need a 20% down payment to buy a home.

There. I said it.

Yet somehow, this myth lives on and it gets passed down from generation to generation like grandma’s meatloaf recipe, except this one’s full of stress and F.E.A.R (faulty evidence appearing real) instead of breadcrumbs and ketchup.

In reality, most buyers, not only first time buyers, are putting down far less. And leveraging! We’re talking 3%, 5%, sometimes even zero down with VA or USDA loans. And it’s not just possible, it’s NORMAL.

So why do people still believe the 20% thing?

Blame a mix of outdated advice, online misinformation, and the well-meaning uncle who bought his house in 1987 for the price of a new Chevy…

Yes, putting down 20% can help you avoid mortgage insurance and lower your monthly payment, but it’s not the golden ticket people make it out to be. Investing that extra 17, 15, 10 or even 5% early in life can yield far greater long term wealth benefits than $80 in mortgage insurance! Waiting to save that much can cost you years of rent (in our area anywhere between $2,000 and $5,000, if not more! Also, there is potential for higher future home prices as well. In many cases, waiting actually costs you more in the long run.

What’s better than 20% down?

Having the right strategy for your situation. Whether that means putting 3-5% down and keeping cash on hand for updates, emergencies, or investing—that’s a win. The best mortgage isn’t about a rate or a number. That’s usually the FEAR and emotional aspect of this process. It really is about flexibility, stability, and smart planning.

If you’re wondering what options you might qualify for, I’m happy to walk you through it. There’s more flexibility out there than you think.

Scott Davis
Regional Vice-President
NMLS ID 166596

O: (571) 800-1974 | M: (703) 209-3138 
E: scott@davisteam.com
W: DavisTeam.com