You Don’t Need 20% Down to Buy a Home!

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Close your down payment gap.  The Truth About Down Payment Assistance (DPA) Programs

By Eboni Killian, Managing Broker

One of the biggest misconceptions keeping people from buying a home is the belief that you must have 20% saved for a down payment. That outdated idea has stopped countless renters from making the leap into homeownership, but here’s the truth: You do not need 20% down to buy a home!

In fact, many loan programs allow for much lower down payments, and Down Payment Assistance (DPA) programs can help bridge the gap even further. Let’s bust this myth and explore how DPA programs can help you get the keys to your dream home sooner than you think.

Myth #1: You Need 20% Down to Buy a Home

This is one of the most persistent home-buying myths. While a 20% down payment can help you avoid Private Mortgage Insurance (PMI), it’s not a requirement. Many loans allow for much lower down payments:

  • FHA Loans: As little as 3.5% down
  • Conventional Loans: As little as 3% down (Yes, really!)
  • VA & USDA Loans: 0% down for eligible buyers

Even if you don’t have these savings set aside, Down Payment Assistance (DPA) programs can help cover part or all of your upfront costs. That means homeownership could be more within reach than you ever imagined!

Myth #2: DPA Programs Are Only for First-Time Buyers

While some programs prioritize first-time homebuyers (defined as those who haven’t owned a home in the last three years), many options are available to repeat buyers as well. Certain programs even cater specifically to veterans, essential workers, or buyers in targeted areas.

Myth #3: There’s No Money Left for DPA

Wrong! There are millions of dollars available through government agencies, non-profits, and even some employers. Availability may vary by location, but opportunities are out there if you know where to look.

Myth #4: Qualifying for DPA is Too Hard

While each program has its own criteria (such as income limits, location, and homebuyer education courses), they’re not as difficult to qualify for as you might think. With proper guidance, you can navigate the process with ease. It may require a little more paper work and it may take you a little longer to gather all the required documents however it’s so worth it, to be able to qualify sometimes for up to $100,000 in DPA. 

Myth #5: DPA Only Applies to Low-Cost Homes

Many DPA programs work with a variety of loan types and price points, including FHA, VA, USDA, and even conventional loans. Some programs cover buyers earning up to 120% of the Area Median Income (AMI), meaning you may qualify even if you don’t consider yourself low-income.

Homeownership is Closer Than You Think

If a big down payment has been stopping you from buying a home, it’s time to rethink your options. There are resources available to help you buy with less money upfront—without draining your savings.

At Sovereign Realty & Management, we’re here to help you explore the best DPA programs, loan options, and homebuying strategies so you can step into homeownership sooner.

Let’s chat! Reach out today and start your journey toward homeownership.