If you’ve ever thought about buying a home but hesitated because you weren’t sure how much you’d need to put down, you’re not alone. One of the biggest misconceptions we hear from buyers is that a 20% down payment is the golden rule. In reality, that’s simply not true—and believing it might be keeping you from stepping into homeownership sooner than you think.
Let’s break it all down and talk through your real options.
Why the 20% Myth Persists
The 20% benchmark has been around for decades, and while it still holds benefits (like avoiding private mortgage insurance, or PMI), it’s far from required. In fact, most buyers today put down far less. According to the National Association of REALTORS®, the median down payment for first-time homebuyers in 2024 was just 9%. Many people successfully buy homes with 3%, 3.5%, or even 0% down.
So why do we still hear about 20%? It’s mostly because it used to be the norm before more accessible lending programs were introduced. But thanks to modern loan options and buyer-focused programs, you’ve got far more flexibility.
Let’s Explore Your Down Payment Options
Whether you're a first-time buyer or looking to move up, here are some of the most common paths to homeownership—no 20% required.
1. VA Loans – 0% Down
For eligible veterans, active-duty service members, and select military spouses, VA loans are an unbeatable option. Not only do they require zero down payment, but there’s also no PMI and often lower interest rates than traditional loans.
If you've served our country, this benefit is well-earned—and it’s one of the most powerful tools available to help veterans build wealth through real estate.
Good for: Veterans, active-duty military, surviving spouses
Noteworthy: Backed by the U.S. Department of Veterans Affairs
2. FHA Loans – 3.5% Down
Backed by the Federal Housing Administration, FHA loans are designed with first-time homebuyers in mind. These loans allow you to purchase a home with just 3.5% down, even if your credit score isn’t perfect.
They do require mortgage insurance, which helps protect lenders, but that cost is typically manageable—and it makes homeownership accessible for more people.
Good for: First-time buyers, buyers with lower credit or less saved
Noteworthy: Easier qualification, flexible guidelines
3. Fannie Mae & Freddie Mac – 3% Down
If you’ve got strong credit and a steady income, conventional loans backed by Fannie Mae or Freddie Mac offer a low down payment option of just 3%. These loans are ideal for buyers who want to avoid some of the longer-term costs of an FHA loan, like the mortgage insurance that doesn’t cancel automatically.
Good for: Buyers with good credit and consistent income
Noteworthy: Potentially lower mortgage insurance costs than FHA
4. Conventional Loans – 5% to 20%+ Down
This is your classic mortgage type. Many buyers go this route with 5–10% down, especially those who are moving up or have a little more saved. Putting down 20% is still an option—and doing so helps you avoid PMI and can lower your monthly payments—but it’s certainly not required.
Good for: Buyers with solid savings, repeat buyers
Noteworthy: PMI can often be removed once equity hits 20%
You Have More Power Than You Think
One of the most empowering things you can do as a buyer is learn your options. Your down payment doesn’t define your worthiness as a homeowner—it’s just one piece of the puzzle. With the right loan, the right team, and the right strategy, owning a home may be closer than you think.
At the end of the day, the best loan program is the one that fits you—your income, your goals, and your comfort level. And that’s where we come in.
How We Help
As local Tucson agents, we walk our clients through this process every single day. When you work with us, you’re not navigating mortgage terms and loan programs alone. We connect you with trusted local lenders, help you understand your options, and create a game plan that feels good and works for your future.
Because buying a home isn’t just about numbers—it’s about freedom, stability, and creating the life you want.
Let’s Talk About What’s Possible
Whether you’ve got 20% saved or just starting with 3%, we’ll help you map out your journey to homeownership—one step at a time.
Reach out today and let’s explore your path forward.
Matthew & Christina Tennyson
REALTORS® | Tierra Antigua Realty
🏠 Equal Housing Opportunity
🌐 www.welcomehometotucson.com