Do You Need 20% Down?

A closer look at down payment options.
For many would-be homebuyers, the down payment feels like the biggest hurdle. And one of the most common beliefs is that you need to save 20% of the purchase price before you can even think about buying a home.
The good news? That is not always true.
While putting 20% down can have benefits, such as lowering your monthly payment or helping you avoid private mortgage insurance, it is not required for every buyer. Many first-time homebuyers put down far less thanks to loan options designed to make homeownership more accessible. FHA loans, for example, may allow qualified buyers to purchase with as little as 3.5% down, while VA and USDA loans may offer zero down payment options for eligible buyers.
Down payment assistance programs can also make a difference. Many buyers do not realize these programs exist or assume they will not qualify. Programs such as Arizona Home Plus may help with a down payment and/or closing costs, depending on eligibility. Various cities or counties across Arizona also offer local assistance programs.
So where did the 20% idea come from?
For many buyers, it has long been seen as the “traditional” down payment. And while it can still be a smart goal in some situations, it is not the only path. 
Down payments are not one-size-fits-all. If you are thinking about buying a home, explore your options to find the best path for your goals.