One of the biggest misconceptions about buying a home is that you need 20% saved for a down payment.
The truth? You may be able to buy a home with significantly less.
According to Zillow’s October 2026 Consumer Housing Trends Report, 50% of mortgage buyers reported putting down less than 20%. And Realtor.com’s September 2026 research found the national down payment share was 13.7% in the second quarter of 2026.
So if you’ve been putting off buying because you thought you needed a huge down payment, it may be time to explore your options.
How Much Do You Actually Need?
Several mortgage programs offer lower-down-payment options for qualified buyers:
- Conventional loans: Some programs allow as little as 3% down.
- FHA loans: Eligible buyers may qualify with as little as 3.5% down.
- VA loans: Eligible military borrowers may qualify with no down payment.
- USDA loans: Qualified buyers purchasing eligible properties may have zero-down-payment options.
On a $300,000 home, a 3% down payment is $9,000—compared with $60,000 for 20%. Keep in mind that closing costs, prepaid expenses, and other charges may require additional funds.
What About Down Payment Assistance?
You may have more options than you realize.
For Pennsylvania buyers, the Pennsylvania Housing Finance Agency (PHFA) offers home financing and down payment or closing cost assistance opportunities for eligible borrowers. Requirements vary by program and may include income limits, purchase-price limits, homebuyer education, and other conditions. Some assistance must be repaid.
Buyers outside Pennsylvania may find similar programs through their state housing finance agencies or local communities.
Is Putting Less Than 20% Down a Good Idea?
It depends on your circumstances.
A smaller down payment can help you purchase sooner and preserve savings for emergencies. However, it generally means borrowing more, and mortgage insurance may apply.
The goal isn’t necessarily the lowest possible down payment. It’s finding a comfortable balance between cash needed upfront, your monthly payment, and savings left after closing.
What Would Your Monthly Payment Look Like?
Before deciding how much to put down, explore how purchase price, down payment, and interest rate affect your estimated monthly housing costs.
Try the Duran Lending Team Mortgage Payment Calculator to compare scenarios and get a clearer starting point. Calculator results are estimates, not loan quotes or approvals.
Let’s Explore Your Options
At the Duran Lending Team, we help buyers understand their financing choices, explore eligible assistance programs, and build a mortgage plan around their goals.
Whether you’re ready to buy or just getting started, we’re here to help.
Schedule a Consultation With the Duran Lending Team
Educational information only. Loan programs, down payment requirements, mortgage insurance, and assistance eligibility vary. Not all applicants will qualify. This is not a commitment to lend.
Research sources: Zillow Consumer Housing Trends Report (October 2026) · Realtor.com Down Payment Report (September 2026)
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