The 20% down payment myth (and what you really need).

If there's one belief that keeps good people renting longer than they need to, it's this one: "I can't buy until I've saved 20% down." I hear it almost every week — it's what most of us grew up hearing.

The honest truth: 20% down is not a requirement for most home loans. It's a benchmark that helps you avoid mortgage insurance on a conventional loan — useful to know, but a long way from mandatory.

What you actually need

Depending on the program and your situation, the minimum down payment varies a lot:

• Conventional — as little as 3% down for many buyers.
• FHA — as little as 3.5% down, with more flexible credit guidelines.
• VA — zero down for eligible veterans and active-duty service members.
• USDA — zero down on eligible homes in rural and many suburban areas.

And down payment assistance can cover part — sometimes all — of that down payment through a grant or small second loan. The real number to get started is often far smaller than the one in your head.

What about mortgage insurance?

Put less than 20% down on a conventional loan and you'll usually pay private mortgage insurance (PMI) for a while. That's real — but it's not forever. PMI typically falls off once you reach about 20% equity, which can arrive faster than you'd think as you pay down the loan and values rise. For many buyers, a modest monthly PMI beats years of additional rent.

The cost of waiting

Saving 20% is a moving target — while you stack cash, prices and rents often climb too, so the goalpost slides. Getting in sooner with a smaller down payment isn't reckless; for many families it's the more practical math.

The best down payment is the one that actually gets you into a home you can comfortably afford.

If 20% has been your mental finish line, let's recalculate together. You may be a lot closer than you realize.