If you're dreaming of buying a home but think you need to save up for a 20% down payment, you're not alone. Many buyers believe putting down 20% is a must, but that's not the case for everyone. According to the Zillow Buyer's Housing Trends Report 2024, about half of mortgage buyers put down less than 20% when purchasing a home.
A Shift in Down Payment Trends
The 20% down payment has long been considered the standard, but today's housing market is far more flexible. Here's what Zillow's data actually shows about how buyers are coming to the table:
- 7% of buyers put down less than 3%
- 11% put down between 3% and 5%
- 8% put down 6% to 9%
- 22% put down between 10% and 19%
Nearly half of all buyers are putting down less than 20%. Many are opting for more affordable down payment options to secure homes sooner rather than later. While 28% of buyers did put down exactly 20%, it's clearly not the only path to homeownership.
The Flexibility of Less Than 20%
A 20% down payment has real advantages: better mortgage rates and no PMI requirement. But for many buyers, putting down less is the smarter move, especially if it means getting into the market faster. If you don't have 20% saved, you can still qualify for a mortgage with as little as 3% down, depending on the loan type. The FHA loan program allows as little as 3.5% down with a credit score as low as 580.
Why Less Than 20% Could Be Right for You
There are several reasons a smaller down payment might actually fit your financial situation better.
Faster homeownership. If you've been saving but aren't near 20%, waiting can delay your goals for years. Putting down less lets you enter the market now, start building equity, and stop watching home prices move further out of reach.
More financial flexibility. Saving for a large down payment can drain your reserves. By putting down less, you keep cash available for emergencies, renovations, or future investments.
First-time buyer programs. FHA loans allow 3.5% down. VA loans require zero. Down payment assistance programs exist across Florida that can cover part or all of your upfront costs.
PMI isn't forever. If you put down less than 20% on a conventional loan, you'll likely pay PMI, but it can be removed once you've built enough equity. It's a temporary cost, not a permanent one.
You Can Still Close Fast
At 14 Days To Close, we help buyers get to the closing table quickly, even with a lower down payment. Our goal is to get you in your new home in 14 days or fewer. The size of your down payment doesn't slow down our process. It's the preparation that matters.
Ready to Get Started?
Don't let the 20% myth keep you from moving forward. Our team at 14 Days To Close is here to help you secure your dream home, fast. Start your pre-approval today and we'll show you exactly which loan gets you the best terms for your situation.
