The Truth About Down Payments in 2025.
If you’ve been thinking about buying a home in 2025, chances are you’ve heard the old rule of thumb: you need 20% down to buy a house. For many, that number alone can feel discouraging—especially when home prices continue to rise. The truth? The 20% down payment rule is one of the biggest myths in real estate today.
Let’s break it down.
Where Did the 20% Rule Come From?
The idea of a 20% down payment comes from a time when lending options were much more limited. Historically, lenders required a large down payment as a way to reduce risk. But in today’s housing market, mortgage programs have evolved. Buyers now have access to a wide range of loan products designed to make homeownership more attainable.
What’s Actually Required in 2025?
Here’s the reality:
Conventional Loans: Many lenders allow down payments as low as 3%–5%, depending on credit score and income.
FHA Loans: With a credit score of 580 or higher, you may only need 3.5% down.
VA & USDA Loans: For qualified buyers, these programs often require 0% down. That’s right—no down payment at all.
So if you’ve been waiting to save up 20% before even considering homeownership, you could be holding yourself back unnecessarily.
But Is 20% Ever a Good Idea?
While you don’t need 20% down, there are advantages if you can swing it:
You’ll avoid private mortgage insurance (PMI) on most loans.
Your monthly payments will be lower.
You’ll build equity faster.
That said, putting 20% down isn’t always the smartest move. For some buyers, keeping extra savings on hand for renovations, emergencies, or investments is more valuable than tying up all their cash in a down payment.
The Bottom Line
In 2025, the real truth about down payments is this: you have options. You do not need 20% down to buy a home. From first-time buyer programs to low- and zero-down loans, there are more pathways to homeownership than ever before.
The best step? Talk to a trusted real estate professional and a qualified lender to explore which loan program fits your financial situation.
**TAKEAWAY: Don’t let the 20% myth stop you from pursuing your dream of homeownership. In today’s market, waiting until you’ve saved that much could mean missing out on the perfect home.
Let’s Chat About Your Options
I know the idea of saving for a big down payment can feel overwhelming, but I promise—you don’t have to wait years to buy your dream home. Every buyer’s situation is different, and that’s why I love helping people figure out the path that’s right for them.
If you’re curious about what’s possible for you, let’s connect. I’ll walk you through your options, introduce you to trusted local lenders, and help you feel confident about your next step.
Call or text me at 785-656-0123
Email: baileysellsnm@gmail.com
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Your dream home might be closer than you think—let’s make it happen together!