You may not need a 20% down payment to buy a home, despite the common misconception. Many first-time buyers don’t realize how much money they’ll actually need. Down payments can range from zero to 20%, with plenty of options in between, depending on which loan programs you qualify for.
For instance, FHA loans often require as little as 3.5% down, while VA and USDA loans may offer zero-down options for eligible buyers. However, even with a no-down-payment program, you’ll still need funds for closing costs, moving expenses, utility setup, and other essentials. It’s also wise to have a financial cushion for unexpected costs or emergencies.
Start saving now for your down payment and/or closing costs to be prepared when the right opportunity comes along!