Down Payments & Savings

I need 20% down to buy a house, right?

That's the single most persistent myth in home buying. Many loan programs allow much smaller down payments — some conventional options start low, and certain government-backed programs can go lower still for eligible buyers.

Then why does everyone say 20%?

Because at 20% down, conventional loans typically don't require private mortgage insurance (PMI). Below that, PMI is usually added to the payment. It's a trade-off — not a gate.

For many buyers, getting into a home years sooner with a smaller down payment beats renting for years to hit 20%. It's a math-and-life decision a loan officer can walk through with your actual numbers.

I've heard about down payment assistance. Is that real?

Very real. State housing agencies and local programs offer down payment and closing-cost assistance for qualified buyers — often structured as second loans or grants tied to the first mortgage.

The key words are qualified buyers: these programs carry income limits, purchase-price limits, and often first-time-buyer or homebuyer-education requirements. (This course is a great head start on that last one.)

How do I find out what I'd qualify for?

Ask a loan officer who works with your state's housing agency programs — availability and rules vary by location and change over time, so current, local knowledge is the shortcut.

My parents want to help with the down payment. Is that allowed?

Yes — gift funds from family are common and welcome on most loan programs. The catch is documentation: lenders need to verify the money is a true gift, not a hidden loan.

Expect a signed gift letter stating no repayment is expected, plus a clear paper trail of the transfer. Easy when done right, messy when money just appears in your account.

So no surprise cash deposits before closing?

Exactly. Large unexplained deposits slow things down because they all have to be sourced. Tell your loan officer about gifts early and they'll make the paperwork painless.