When you’re thinking about buying a home, one of the biggest questions on your mind is probably: How much do I need for a down payment? Good news—there are more options and resources than you might think. Let’s break down the five most important things you need to know about down payments before you start your homebuying journey.

1. You May Not Need a Down Payment at All

Yes, really! There are mortgage programs that don’t require any down payment at all. The most well-known are the VA loan, available to eligible veterans and active-duty military, and the USDA loan, which is designed for buyers in eligible rural areas. These programs offer 100% financing, which means you could buy a home with no money down. If you qualify, they can be a fantastic option.

2. Low Down Payment Options Starting at 1%–3%

Even if you don’t qualify for a zero-down loan, there are still options with very low down payment requirements. Some loan programs allow for as little as 1%, 3%, or 5% down, especially for first-time buyers or those with moderate income. These programs make it much easier to enter the housing market without needing to save 20%—a number that often stops people from moving forward.

3. First-Time Homebuyer Programs Can Help—But Act Fast

Many states, cities, and counties offer down payment assistance programs (DPAPs) for first-time or qualified homebuyers. These can come in the form of grants, deferred loans, or forgivable second mortgages. However, the availability of these funds is often limited—and they can disappear quickly. If you’re interested, be sure to ask about current programs in your area and act quickly before funding runs out.

4. Gift Funds from Family Can Be Used

Did you know that family members can gift funds to help you with your down payment and even closing costs? Parents, grandparents, siblings, and other relatives are often allowed to contribute, but there are a few rules:

• The funds must be a true gift (not a loan).
• Documentation is required, including a signed gift letter.
• The money needs to be properly sourced and tracked in your bank account.

It’s a great way for loved ones to help make homeownership possible for you.

5. Down Payments Cannot Be Cash on Hand

One important rule: cash is not king when it comes to your down payment. If you’ve been saving money at home or received cash from someone, it cannot be used for your down payment. Mortgage lenders require funds to be sourced and documented—meaning they must come from a verified bank account or approved gift. Depositing a large amount of cash during the loan process can cause delays or even disqualify you, so it’s best to keep everything traceable and transparent.

Final Thoughts: Know Your Options, Buy with Confidence

Down payments don’t have to be scary—and you definitely don’t need 20% to buy a home. From zero-down options to gift funds and state assistance programs, there are plenty of ways to make homeownership accessible, even if you’re working with limited savings. The key is to work with a knowledgeable mortgage professional who can walk you through your options and help you take advantage of what’s available to you.

Have questions or want to explore which down payment path is right for you? Contact me today to get started!