By Michael DuBois · Published 2026-10-04 · Last updated 2026-10-04
Why isn't 20% the only answer?
Some loan programs allow less than 20% for eligible buyers. HUD says an FHA down payment can be as low as 3.5% in qualifying cases, while other mortgage products have different requirements. A low down payment can change monthly costs and mortgage-insurance needs.
How much cash will you need at closing?
A down payment is only one line in the cash-to-close figure. The Loan Estimate also shows lender fees, third-party services, taxes, insurance and prepaid items, minus applicable credits or assistance. Ask for a property-specific estimate.
Could assistance be available?
A housing finance agency may offer a first-time-buyer or other eligible homebuyer program. Availability and terms vary by state and location; use the agency's current rules and a participating lender before assuming any assistance amount.
Sources and next steps
Read the related loan option, or bring your own numbers to a conversation with Michael.