If you've ever heard "you need 20% down," congratulations — you've heard the single most expensive piece of advice in real estate.
If you've ever Googled "how much do I need to put down on a house," you've probably been told the same thing: 20%. They're all wrong.
The national median down payment for first-time buyers in 2025 was 8%. FHA loans go down to 3.5%. Conventional 97 loans go down to 3%. Here are five more myths that are just as wrong.
20% down avoids private mortgage insurance (PMI). That's the only reason the number matters. PMI typically costs $80–$200/month — far less than waiting two years to save 20%, with rents and prices both climbing.
FHA loans accept scores as low as 580 with 3.5% down. Conventional accepts 620. The bigger question is your payment history over the last 12 months.
Our roadmap quiz tells you exactly which loan type and down payment % you should aim for.
Sometimes renting is the right move. The question isn't rent vs. buy in the abstract — it's rent vs. buy for you, with your numbers, in your city, over your likely timeline.
Some programs are. Many aren't. Florida's Hometown Heroes offers up to $35,000 to public-facing workers with income limits that often exceed $100,000.
You won't. No one feels ready. "Ready" is a feeling. "Qualified" is a checklist. Focus on the checklist, and the feeling catches up.