Do You Need 20 Percent Down to Buy a Home?

If you're thinking about buying your first home, you've probably heard that you need to save 20% of the purchase price before you can even think about making an offer.

The good news? That isn't always the case.

One of the biggest misconceptions first-time homebuyers have is that a 20% down payment is required to purchase a home. While 20% down may be a good fit for some buyers, it is not the only path to homeownership.

Why Do People Think They Need 20% Down?

For years, 20% became a common benchmark in the homebuying process. While it can offer advantages for some buyers, it has led many prospective homeowners to believe they need to delay their plans until they've saved a large amount of money.

The reality is that every buyer's situation is unique. Depending on your financial situation, credit profile, income, and the type of loan you qualify for, there may be options that require a lower down payment.

Before You Start House Hunting, Start Here

It's easy to spend hours browsing listings, saving homes online, and scheduling showings.

However, one of the most valuable first steps in the process is having a conversation with a mortgage lender. The earlier you connect with a lender, the sooner you can gain a clearer picture of your options and budget.

So, why does this matter?

A pre-qualification can help you better understand:

• What price range may fit your budget
• What your estimated monthly payment could look like
• How much you may need to bring to closing

These insights can help you shop with confidence and focus on homes that align with your financial goals.

Ready to Explore Your Options?

You don't need to have every answer before reaching out. Whether you're actively planning to buy a home or simply starting to explore the possibility of homeownership, our mortgage team is here to help you take the next step.

Connect with an FIBT mortgage lender to start the conversation.