If you’ve been holding off on buying a home because you think you need to save up a full 20% down payment—you’re not alone. It’s one of the most common myths in real estate, and it’s probably holding more people back than it should.

Here’s the truth: you don’t need 20% down to become a homeowner. In fact, most buyers—especially first-timers—put down much less.

Where Did the 20% Rule Even Come From?

Once upon a time, putting 20% down was the standard because it helped protect lenders. A bigger down payment meant you were less likely to default, and it kept you from having to pay private mortgage insurance (PMI). But things have changed. Today, there are more flexible options available, and lenders understand that waiting years to save up that kind of cash just isn’t practical for most buyers—especially in places like Cary, where home values continue to rise.

Believe it or not, according to the National Association of Realtors, the median down payment for first-time homebuyers is just 6 to 7 percent. Repeat buyers typically put down around 17 percent, but again, that’s an average—not a rule.

What If You Can Only Afford 3% or 5%?

There are loan programs designed for buyers who don’t have a huge chunk of savings:

• Conventional loans: Some allow as little as 3% down.
• FHA loans: Require just 3.5% down and are ideal for buyers with lower credit scores.
• VA loans: Available to eligible veterans and active-duty military, with 0% down required.
• USDA loans: For certain rural and suburban homes, these also offer 0% down.

These programs exist to help people get into homes sooner, not later.

What’s the Catch?

You might have to pay PMI if you put down less than 20%, but it’s not a dealbreaker. PMI typically adds a small amount to your monthly payment—and in many cases, it can be removed once you reach 20% equity.

Also worth noting: putting less down doesn’t mean you’re buying beyond your means. A good lender will help you understand your budget, including monthly costs, closing fees, and any extras like homeowners insurance or HOA dues.

Why Waiting Could Cost You More

In a competitive market like Cary, home prices tend to rise year over year. That means waiting to save 20% could actually make your ideal home more expensive. You may be better off buying now with a smaller down payment than waiting and risking higher prices—and higher mortgage rates—later.

At Cary Area Real Estate, we work with trusted lenders who can walk you through all your options and help you find a plan that fits your budget and goals. Whether you’re just starting your search or ready to put in an offer, you don’t have to figure it all out alone.

Ready to talk next steps? Contact us today—we’re here to help you move forward with confidence.