A group of friends celebrate the new homebuyers in their group with a dinner party. First-time homebuyers can purchase property with less than 20% down payment.

    According to recent data, more than half of all homebuyers in California, Texas, and nationwide make their down payment with less than 20% when purchasing a home. This is additional evidence to discard the myth that homebuyers must put down 20% to be eligible for a mortgage loan.

    Over Half Of All Homebuyers Put Down Less Than 20%

    The recently published “Consumer Housing Trends Report 2019” from a real estate research group at Zillow reveals “gathered information from a total of 10,000 key household decision-makers” across the nation.

    The study found that 60% of home buyers put down less than 20% when purchasing a property. This is encouraging news for buyers who believe that putting down 20% or more is required to get a loan.

    Less Than 20% Down Payment Loan Options

    Eligible borrowers in California and Texas can purchase a property with as little as 3% with a conventional loan or 3.5% for an FHA-insured mortgage. Additionally, the majority of military individuals are eligible for a VA loan that provides 100% financing.

    Related: Types of Mortgage Loans

    How Exactly Is Mortgage Insurance Beneficial For Homebuyers

    Provided homebuyers make a down payment of less than 20%, they may end up having to pay for private mortgage insurance (PMI). That is the limit where insurance policies are generally required.

    However, for many people, the extra cost is worth it because it enables them to buy their home quicker and with a reduced down payment.


    Purchasing a home is a big step for many homebuyers, and navigating down payment options can be tricky. The key takeaway for homebuyers is that a 20% down payment is not necessary when purchasing a property. The best way to find out what down payment, loan type, and insurance plan is best for you is to get pre-approved with a trusted mortgage lender, like JVM Lending, and speak with an expert. JVM Lending’s Mortgage Analysts are available 7-days a week by phone at (855) 855-4491 or by email at [email protected].

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