Buy a home with less than 20% of a down payment

Davis Legacy Ventures


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A couple wants to buy a home before starting a family as they have a small apartment that isn’t the best environment for raising a child. 

The main issue? A 20% down payment is much more than the young couple could handle.

Luckily, the couple’s lender directed the them to an FHA loan and they were able to purchase a $135,000 home with only $4,725 down and kept them in a comfortable financial situation. 

The home didn’t have any of the appliances that they needed but the FHA loan gave them some room to have the option to bear the costs of purchasing some appliances. 

The couple’s story is a typical one. More than 66% of renters state the down payment is their greatest obstacle to homeownership. 

Toss in COVID-19 and the monetary destruction it has fashioned, and the obstacle is currently much more impossible for some. An ongoing examination even shows the pandemic could defer the normal Millennials’ homeownership by as much as 53 months—even with diligent saving. 

How much do I need for a down payment?

Standing by just about five-years sounds insane, a down payment program like the couple mentioned utilized may be the appropriate response. In spite of the pandemic and the monetary dangers it presents, numerous banks and lenders are continuing their loan programs with lower payment plans—going from 3% to 10%. Down payments start as low as zero down, so be sure to go over your options with your loan officer. 

The takeaway 

The significant thing for purchasers to recall is that 20% down isn’t required to purchase a home. There are a lot of choices still accessible—pandemic or not! 

If you would like more information or if you are ready to get pre-approved simply visit or call me at 863-694-1232. You can also email me at [email protected]

Jonathan K. Davis, MBA NLS# 314966

Homefront Mortgage – NMLS# 1611328

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