Do I Need 20 Percent Down to Buy a House? No, and Here Are Your Options
Do you need 20 percent down to buy a house? No. Many buyers put down far less, from 3 or 3.5 percent on some loans to nothing at all on a VA loan for eligible veterans. The 20 percent number is mostly about avoiding mortgage insurance, not about getting in the door.
Where did the 20 percent rule come from?
Twenty percent down is the point where a conventional loan no longer needs private mortgage insurance, often called PMI. PMI protects the lender, not you, if a loan goes bad. It adds to your monthly payment, so putting 20 percent down does save you money each month.
But it is a goal, not a requirement. For a lot of families in DFW, 20 percent down on a $350,000 home means coming up with $70,000 before closing costs. Waiting years to save that much is not the only path.
Twenty percent down avoids PMI on a conventional loan. It is not the price of admission.
Do I need 20 percent down to buy a house, or can I put down less?
You can put down less. According to HUD, an FHA loan down payment can be as low as 3.5 percent of the purchase price. Fannie Mae offers conventional options, including its HomeReady loan, with down payments as low as 3 percent for buyers who qualify.
Veterans and eligible service members may not need a down payment at all. The VA says no down payment is required on a VA purchase loan as long as the sales price is not higher than the home's appraised value. Down payment assistance programs in Texas can also help with the down payment and closing costs for buyers who qualify.
Low down payment loans are common, and some need nothing down.
What does a smaller down payment cost me?
A smaller down payment means a larger loan and a higher monthly payment. On a conventional loan with less than 20 percent down, you will typically pay PMI. The good news, according to the Consumer Financial Protection Bureau, is that you can ask to cancel PMI once your balance is scheduled to reach 80 percent of the home's original value, and your servicer must end it automatically at 78 percent if you are current on payments. FHA and VA loans follow their own rules.
So the real question is not whether you can buy with less than 20 percent down. It is which loan makes the most sense for your budget, your credit, and your plans.
Less down means a bigger loan, but PMI on a conventional loan does not have to last forever.
Which low down payment loan is right for me?
Here at Core Community Mortgage, my team and I see every kind of path. Last month we worked with four first-time buyers, and each one took a different route. One used a VA loan. One used down payment assistance. One went FHA. One bought with a 3 percent down conventional loan. Same goal, four different answers.
The key was getting on the phone and talking it through. We will answer a thousand questions if that is what it takes, whether you are buying in Richardson, Garland, or McKinney.
Rates are part of the picture too. The 30 year fixed mortgage averaged 7.40 percent for the week of October 8, 2026, according to Freddie Mac. Your own rate depends on your credit, your down payment, and your loan program.
Quick answers to common questions
Can I buy a house with 3 percent down? Often yes. Fannie Mae offers conventional options with as little as 3 percent down for buyers who qualify.
Is there a home loan with no down payment? Yes. VA loans can require no down payment for eligible veterans and service members, as long as the price is not above the appraised value.
Do I still need money for closing costs if I put little down? Usually yes. Closing costs are separate from your down payment, though seller contributions or assistance programs may help cover them.
Find out how much you really need
Before you spend years saving for 20 percent, find out what you actually need. Call Steve Barton at 214.673.1319 or reach out through corecommunitymortgage.com. We will walk through every option side by side so you can pick the one that fits your life.
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