When it comes to buying a home, one of the biggest questions buyers face is “How much do I need for a down payment?” For many, the thought of saving 20% can feel overwhelming — but here’s some good news: you might not need that much!

The Answer: 3%

That’s right — the minimum down payment for a conventional home loan can be as low as 3% for qualified borrowers.

This means if you’re buying a $300,000 home, your down payment could be just $9,000 instead of $60,000!

Understanding Your Options

While 3% is the minimum, it’s not the only option:

• 3% – For first-time homebuyers or those who qualify for specific programs.

• 5% – Common for repeat buyers.

• 10–20%+ – Can lower your monthly payments and eliminate Private Mortgage Insurance (PMI).

Why 20% Is Often Recommended

You’ve probably heard that you “should” put 20% down — and that’s because it helps you:

• Avoid paying PMI, which protects the lender (not you).

• Get better loan terms and a lower interest rate.

• Start with instant equity in your home.

However, if waiting to save 20% means delaying your homeownership dreams by years, it may make more sense to buy sooner with a smaller down payment.

Final Thoughts

A 3% down payment can make homeownership accessible to more people than ever before. The key is finding the right loan program for your financial situation and long-term goals.

Before making a decision, consult with a trusted mortgage professional to explore your options — and remember, owning a home is closer than you think!