The Biggest Myth in Real Estate: You Need 20% Down to Buy a Home

One of the most common things I hear from would-be buyers is this: “I’m just waiting until I have 20% down.” And I get it. For decades, that number has been drilled into our collective brains. Parents said it. Friends repeated it. Old lending rules made it seem like the only responsible option.

But here’s the truth: you do not need 20% down to buy a home.

So where did this myth come from? Years ago, putting 20% down was one of the main ways to avoid private mortgage insurance, and lending options were far more limited. Over time, that guideline turned into a rule in people’s minds. The result? A lot of people sitting on the sidelines, assuming homeownership is out of reach.

Today’s reality looks very different.

If you’re a veteran or active duty service member, VA loans offer 0% down with competitive rates and no monthly mortgage insurance. FHA loans, which are designed to help first-time and repeat buyers alike, require as little as 3.5% down. And yes, there are conventional loan options with down payments as low as 3%.

That means on a $350,000 home, your down payment could be closer to $10,500 instead of $70,000.

The bottom line? Waiting for 20% down often keeps people renting longer than they need to. The right loan, paired with a solid plan, can open the door sooner than you think. Sometimes the biggest barrier to buying a home isn’t money at all. It’s outdated information.

If you’ve been waiting because of this myth, it might be time to look again.