Home Buying•5 min read
Mortgage Down Payment Explained
Learn how much you really need for a down payment, including the secrets of low-down-payment programs.
The 20% down payment is a myth. Discover the modern reality of entering the housing market with less cash upfront.
Low Down Payment Options
Programs like FHA only require 3.5% down, and some conventional loans allow for as little as 3% for first-time buyers.
The PMI Trade-off
Putting down less than 20% usually means you'll pay Private Mortgage Insurance (PMI), which adds to your monthly cost but helps you buy sooner.
Can I use gifted money?
Yes, many loan programs allow family members to provide 'gift funds' for your down payment, provided there is a proper gift letter.