At Benson & Mangold Real Estate, one of the most common questions we hear from first-time buyers is: “Do I need to put 20% down?”
The short answer? No—and believing that could be holding you back from buying sooner than you think.
The 20% Down Payment Myth
The idea that a 20% down payment is required has been around for years, but it’s simply not true for most buyers today. While putting 20% down can have benefits, it’s not a requirement in many cases.
In fact, there are several loan options designed to make homeownership more accessible. Depending on your situation, you may be able to purchase a home with significantly less upfront.
- Some conventional loans allow as little as 3% down
- FHA loans typically require just 3.5%
- VA and USDA loans may offer zero down payment options for qualified buyers
What Buyers Are Actually Putting Down
So, what are buyers really putting down?
According to the National Association of Realtors, the median down payment for first-time homebuyers is around 10%—half of what many expect.
This means if you’ve been waiting to save 20%, you may be extending your timeline unnecessarily.
Down Payment Assistance Can Make a Big Difference
Another opportunity many buyers overlook is down payment assistance (DPA).
There are more than 2,600 programs available across the U.S., offering financial support to qualified buyers. On average, these programs can provide around $18,000 in assistance—helping bridge the gap and make homeownership more attainable.
Even more surprising? A large percentage of buyers qualify for these programs, but only a small number actually take advantage of them.
The Bottom Line
You may not need as much saved as you think to buy a home. With flexible loan options and available assistance programs, homeownership could be within reach sooner than expected.
If you’re considering buying on Maryland’s Eastern Shore, the team at Benson & Mangold Real Estate is here to help guide you through your options and connect you with trusted local lenders—so you can move forward with confidence.
