Do I need a 20% down payment, or is that outdated?

Do I really need 20% down to buy a house?

You're wondering whether you need to put 20% down on a home, or if that requirement has changed over time. The 20% down payment rule isn't a hard requirement for most home buyers today. Many loan programs allow much smaller down payments, and some require no money down at all.

Conventional loans typically allow down payments as low as 3%, though you'll pay private mortgage insurance (PMI) if you put down less than 20%. FHA loans require just 3.5% down, VA loans for eligible service members require no down payment, and USDA loans for eligible rural areas also require no money down. The 20% figure became popular because that's the threshold where you avoid PMI on conventional loans, but it's not mandatory.

Check what loan programs you qualify for and compare the monthly payment differences. A smaller down payment means higher monthly payments due to a larger loan amount and possibly PMI, but many buyers prefer to keep more cash for moving expenses, repairs, or emergency savings. Your lender can show you payment scenarios with different down payment amounts so you can see what works for your budget and goals.