How Much Do I Really Need for a Down Payment?

When most people start thinking about buying a home, the first question that usually comes up is: "How much do I need for the down payment?" Spoiler alert: it might be less than you think.

Let’s clear up some of the confusion and give you real numbers, real talk, and real options for buying a home in 2025.

Do I Really Need 20% Down?

Nope! While putting 20% down helps you avoid mortgage insurance, it’s not required. In fact, most first-time buyers put down far less.

Here are the most common options:

• 3% – 5% down: Conventional loans for qualified buyers

• 3.5% down: FHA loans with flexible credit requirements

• 0% down: VA and USDA loans (if eligible)

• Down Payment Assistance (DPA): Grants or second loans to reduce what you owe upfront

Let’s Break It Down

Here’s what a down payment could look like on a $300,000 home:

• 3% down = $9,000

• 3.5% down = $10,500

• 5% down = $15,000

• 20% down = $60,000 (but again, not required)

But What About Closing Costs?

Great question! In addition to your down payment, you’ll also need to budget for:

• Closing costs: Usually 2–5% of the home price

• Prepaids: Things like insurance and taxes

• Inspections & appraisal: These usually cost a few hundred dollars

Down Payment Assistance Is a Game Changer

There are programs available in Texas (and many other states) that can help cover your down payment or closing costs. Some are grants (you don’t repay them), and others are repayable loans with great terms.

I work with lenders who specialize in helping buyers access these programs, especially first-time buyers or those who haven’t bought in three-plus years.

What If You’re Not Ready Yet?

If you don’t have the funds right now, don’t stress. Many of my clients start with a plan:

• Check your credit

• Set a monthly savings goal

• Connect with a lender for a soft pre-approval

• Work with me to time the market and your move

Whether your timeline is 3 months or 13 months, we can create a roadmap that gets you there.

💡 Real Talk:

Don’t let the fear of not having 20% down stop you from becoming a homeowner. You’ve got options. You’ve got support. And you’ve got ME.

👉 Schedule Your Free Buyer Consultation