Turn rent money into a front door.
Twenty percent down avoids private mortgage insurance (PMI) and gets you better loan terms — but waiting years to hit 20% while home prices rise can cost more than PMI ever would. Many buyers succeed with 5–10% down, especially first-timers.
The honest math: compare your monthly savings pace against price growth in your market. If saving the last 5% takes two years and prices rise 4% a year, buying sooner with PMI can win. Run your numbers, then talk to a lender about real options.
No. Conventional loans allow as little as 3–5% for qualified buyers, and FHA loans go to 3.5%. Under 20% usually means PMI — an extra monthly cost until you build equity.
Budget another 2–5% of the home price on top of the down payment: lender fees, title, inspections, prepaid taxes. They surprise first-time buyers constantly.
Private mortgage insurance protects the lender (not you) when your down payment is under 20%. It typically costs 0.5–1% of the loan per year, and drops off once you reach 20% equity.
Yes — many states and cities offer grants or low-interest second loans for first-time buyers. They are underused precisely because people assume they won't qualify. Check your state housing authority.