Can I Buy a Home With Less Than 20 Percent Down?

You May Not Need 20 Percent

One of the biggest misconceptions I hear from buyers is that they need a 20 percent down payment to purchase a home. While putting 20 percent down can have advantages, it isn't a requirement for many buyers.

Depending on the loan program and your qualifications, you may be able to purchase a home with significantly less cash upfront.

What Low Down Payment Options Are Available?

Conventional loans may be available with down payments well below 20 percent for qualified buyers. FHA loans can also offer lower down payment requirements, while eligible VA buyers may be able to purchase with no down payment.

There may also be down payment assistance programs available depending on your income, location, and other qualifications.

Because loan programs and requirements change, I always recommend talking with a knowledgeable local lender about the options currently available to you.

What Happens If I Put Less Than 20 Percent Down?

With many conventional loans, putting less than 20 percent down means you'll pay private mortgage insurance, commonly called PMI. FHA financing has its own mortgage insurance requirements.

That additional monthly expense matters, but it doesn't necessarily mean waiting until you have 20 percent saved is the better financial decision.

If waiting several years means continuing to rent while home prices change, buying sooner with a smaller down payment may make more sense. The right answer depends on your finances and goals.

Don't Forget About Other Costs

Your down payment isn't the only cash you'll need to consider. Buyers may also have closing costs, prepaid taxes and insurance, inspection expenses, and moving costs.

When I'm helping buyers plan a purchase, I want them to understand the complete financial picture rather than putting every available dollar into the down payment.

Find the Right Strategy for You

Buying a home in Kitsap County with less than 20 percent down is absolutely possible for many buyers. The question is which financing strategy makes the most sense for your situation.

As a Kitsap County real estate agent, I work closely with buyers and trusted local lenders to understand their budget, compare options, and build a home-buying strategy that leaves them comfortable after closing, not just qualified for the purchase.