Before I bought my own home back in the day prior to being a Realtor myself I thought you needed 20% down to buy a home. That belief kept me on the sidelines longer than it should have. I was saving and saving toward a number that — turns out — was never actually required. ​​​​​​​I'm sharing this because I know I'm not alone. The 20% myth is one of the biggest reasons buyers wait years longer than they need to. So this month, let's bust it wide open!​​​​​​​
MYTH #1
You Need 20% Down to Buy a Home
False. Here's what's actually available to you:
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FHA loan — 3.5% down (great for first-time buyers or those with less-than-perfect credit. FHA loans max out at $1,209,750 in LA County.)
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Conventional loan — as little as 3% down
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VA loan — 0% down (for eligible veterans and active military)
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USDA loan — 0% down (for eligible rural and suburban areas, yes even some parts of LA County)
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Physician loan — 0–5% down (for MDs, DOs, dentists, and sometimes other healthcare professionals — no PMI even at low down payments, and student debt is treated differently which helps with qualifying)
Plus, there are down payment assistance programs available in California that can cover part — or sometimes all — of your down payment. Many buyers have no idea these exist.
*When you buy an investment property, it's 20% down.
MYTH #2
PMI Will Kill Your Budget
Here's the reality:
MYTH #3
Down Payment Assistance Is Only for Low-Income Buyers
If you don't have a lender let me know. Leslie Black is a fantastic lender to speak to. I can introduce you.
SO WHAT IS THE RIGHT DOWN PAYMENT FOR YOU?
It depends on your goals, your savings, and your timeline. There's no one-size-fits-all answer. But the answer is almost never "wait until you have 20%."
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Putting less down keeps more cash in your pocket for reserves, repairs, and life
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Getting in sooner means more time building equity
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In a market like LA, waiting often means chasing a higher price tag
I wish someone had told me this years ago. Don't let the 20% myth keep you on the sidelines.
