Down Payment Options: How Much You Actually Need to Put Down

The 20% down payment myth is one of the most persistent pieces of misinformation in homebuying, and it genuinely keeps qualified buyers sitting on the sidelines longer than necessary. Here is what loan programs actually require.

Conventional Loans: As Low as 3%

Certain conventional loan programs allow down payments as low as 3% for qualified first-time buyers. Below 20% down, you will carry private mortgage insurance until you build enough equity, but this option puts homeownership within reach far sooner than most buyers assume.

FHA Loans: 3.5% Down

FHA loans require 3.5% down with a credit score of 580 or higher, and allow more flexible credit and debt-to-income guidelines than conventional financing. This remains one of the most accessible paths into homeownership, particularly for buyers still building their credit profile.

VA Loans: Zero Down

Eligible veterans and active duty service members can purchase with no down payment at all through a VA loan, without the monthly mortgage insurance that comes with low down payment conventional or FHA options. This is one of the strongest benefits available in the entire mortgage industry.

USDA Loans: Zero Down in Eligible Areas

For properties in eligible rural or certain suburban-edge areas, USDA loans also offer zero down payment financing for qualified buyers within specific income limits. Worth checking if your target area qualifies, since eligibility maps sometimes include areas buyers do not expect.

Down Payment Assistance Can Reduce This Further

On top of these loan program minimums, Nevada Housing Division assistance programs can cover a meaningful portion of your down payment and closing costs, sometimes structured as a grant that never has to be repaid. Combined with a 3% or 3.5% down loan program, this can mean bringing very little of your own cash to closing.

Why Buyers Still Assume They Need 20%

The 20% figure persists mostly because it is the threshold that avoids mortgage insurance on a conventional loan, not because it is a requirement to buy at all. Avoiding mortgage insurance is a legitimate financial goal for some buyers, but it should be a choice made with full information, not a misunderstood requirement blocking someone from buying in the first place.

When Putting More Down Actually Makes Sense

If you have the funds available and plan to stay in the home long term, a larger down payment reduces your monthly payment and can eliminate mortgage insurance immediately. This is a legitimate strategy, just not a universal requirement everyone needs to hit before they are allowed to buy.

Find Out What You Actually Need to Put Down

Your real down payment number depends on your credit, your loan program eligibility, and whether assistance programs apply to your situation. Let's find your actual number instead of assuming 20%.

Get started here or book a call and let's see what you actually need to bring to closing.