Many first-time homebuyers believe they need to save a 20% down payment before they can purchase a home, but that’s one of the biggest myths in real estate.

In fact, recent Google Trends data shows online searches for down payment information have reached an all-time high, proving more buyers are actively trying to understand how much they really need to save before making a move.

The good news? For most buyers, especially first-time buyers, the answer is often much less than 20%.

The 20% Down Payment Myth

While putting 20% down can offer benefits like avoiding private mortgage insurance (PMI) and lowering your monthly payment, it’s not a requirement for most home loans.

Many loan programs are specifically designed to help buyers purchase a home with a smaller upfront investment.

For example:

• FHA loans allow down payments as low as 3.5%
• Conventional loans may require as little as 3%
• VA loans offer 0% down for eligible Veterans and active-duty military
• USDA loans also provide zero down payment options for qualified rural buyers

Your required down payment depends on factors like your loan type, credit profile, and lender guidelines, not a universal 20% rule.

What First-Time Buyers Are Actually Putting Down

According to the National Association of Realtors (NAR), the median down payment for first-time homebuyers is just 10%, which is half of the commonly assumed 20%.

That means many buyers may be delaying homeownership longer than necessary simply because they’re working toward a savings goal they may not actually need.

Understanding your true options can help you create a more realistic and achievable timeline for buying.

Don’t Overlook Down Payment Assistance Programs

Another major opportunity many buyers miss is down payment assistance (DPA).

These programs are designed to help buyers with grants, forgivable loans, or financial support that can significantly reduce upfront costs.

According to Realtor.com:

• Nearly 80% of first-time buyers may qualify for down payment assistance
• Only about 13% actually use it

That gap means many buyers are leaving valuable financial support on the table.

There are currently more than 2,600 homeownership assistance programs across the U.S., with an average benefit of around $18,000.

Some buyers may even qualify for multiple programs, helping stretch their savings even further.

Bottom Line

The truth is, most first-time homebuyers do not put 20% down.

If you’ve been waiting to buy because you thought you needed to hit that number first, it may be worth taking a closer look at your actual options.

Between low-down-payment loan programs and available down payment assistance, buying a home could be more achievable, and sooner, than you expected.

The best next step is connecting with a trusted lender or real estate professional who can help you understand what works best for your situation.