Financing
Last updated: Jan 20257 min readDown Payment Strategies
How much to put down and where to find the money
The down payment is often the biggest hurdle for homebuyers. Learn how much you really need and creative ways to reach your goal.
1How Much Do You Really Need?
The 20% myth debunked:
- Conventional loans: As low as 3% down
- FHA loans: 3.5% down with 580+ credit score
- VA loans: 0% down for eligible veterans
- USDA loans: 0% down in rural areas
- 20% down: Avoids PMI but isn't required
2Down Payment Assistance Programs
Free money exists—you just have to find it:
- State housing finance agencies: Grants and low-interest loans
- Local programs: City and county assistance
- Employer programs: Some companies offer homebuying assistance
- Non-profits: Organizations like NACA offer no-down-payment options
- Family gifts: Allowed by most loan programs (with documentation)
3Saving Strategies
Build your down payment fund faster:
- Set up automatic transfers to a dedicated savings account
- Cut discretionary spending temporarily
- Pick up a side gig specifically for housing savings
- Sell items you no longer need
- Redirect windfalls (tax refunds, bonuses) to savings
Pro Tips
- Lower down payments mean higher monthly payments and PMI
- Some assistance programs have income limits—check eligibility
- Gift funds typically require a gift letter
- Don't forget to save for closing costs too (2-5% of loan)