One of the most common myths in homebuying is that you need to save up a 20% down payment. If you’ve heard that, you’re not alone—but here’s the truth: most buyers today put down far less. 

In fact, according to the National Association of Realtors: 

• The average down payment for first-time buyers is just 6%. 

• Repeat buyers put down about 17% on average. 

• Many loan programs allow as little as 3% down, and some offer zero-down options for qualifying buyers (like VA or USDA loans). 

So why do people keep saying you need 20%? 

The answer is private mortgage insurance, or PMI. This is a fee added to your monthly mortgage if you put less than 20% down. It’s designed to protect the lender—not you—in case you stop making payments. But while PMI adds cost, it also makes homeownership more accessible sooner. 

Putting 20% down can reduce your monthly payment, but waiting years to save that amount could cost you more in the long run. 

The Real Risk of Waiting to Save 20% 

Trying to save 20% in a rising market can backfire. Here’s why: 

• Home prices keep climbing. According to CoreLogic, home values have continued rising year-over-year. Waiting may mean paying more for the same house later. 

• Interest rates fluctuate. Even a small rate increase can significantly raise your monthly payment—possibly erasing any benefit you gained by putting more down.  

• You’re missing out on equity. Every month you wait is a month you’re paying rent instead of building wealth. The earlier you buy, the sooner you start growing equity. 

But What If You’re Not Ready? 

Even if you’re not ready to buy this month—or this year—that’s okay. That’s exactly why your Employee Homeownership Program exists: to help you prepare and make informed decisions that align with your goals. 

When you contact us, here’s how we help: 

• We’ll help you understand what you can afford today based on your current income and credit—and show you how small changes to your credit score, debt-to-income ratio, or savings could expand your options and improve your loan terms. 

• We’ll help you explore low-down-payment loan options and eligibility for down payment assistance. 

• You’ll get real numbers, including estimates for monthly payments, closing costs, and whether PMI might apply. 

• We’ll connect you with trusted mortgage lenders and agents who are trained to help employees maximize their savings and homeownership benefits. 

Bottom Line 

You don’t need to wait until you’ve saved 20% to buy a home. In fact, waiting could cost you more in the long run. What you need is a plan—and we’re here to help you build one that works for your timeline, goals, and budget.