Debunking the 20% down myth

Why 20% Down Isn’t Always Required

One of the biggest misconceptions I hear from buyers is that they must put 20% down before purchasing a home. While that can be a great option for some, it’s not the only path — and in many cases, it may not be the most strategic one either.

Here are a few things to consider as you weigh your options:

Entering the market sooner
Putting less than 20% down may require PMI (Private Mortgage Insurance), but it can also allow you to purchase sooner rather than waiting years to save a larger down payment. For many buyers, getting into the market earlier can be the difference between watching prices rise and actually building ownership.

Protecting your cash reserves
A full 20% down payment can significantly reduce your available savings. Keeping some liquidity on hand can provide flexibility for repairs, moving expenses, furnishings, or simply peace of mind once you’re in the home.

Positioning for long-term equity
In a steady or appreciating market, owning sooner can allow equity to begin building through both principal paydown and potential appreciation — rather than waiting on the sidelines to reach a specific down payment threshold.

Every buyer’s financial picture and comfort level are different, which is why these decisions are best made within a clear overall strategy. If you’re unsure what structure makes the most sense for you, that’s exactly what we map out during a buyer consultation so you can move forward with clarity and confidence.

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