You Don’t Need 20% Down to Start Winning in Real Estate

by Bill Gillane

When it comes to buying a home, the down payment conversation is always a big one. And the truth is, both a large down payment and a minimum/zero down option can make sense—it just depends on your situation and your goals. Most buyers wait too long—and end up chasing rising prices. Here’s a breakdown in plain English so you can decide what’s right for you.

Putting More Money Down (Large Down Payment)

Pros:

Lower monthly payment: You’re borrowing less, so your monthly mortgage payment drops.
Less interest over time: Smaller loan = less interest paid overall.
No PMI: Hit that 20% mark and you typically avoid private mortgage insurance, which keeps your monthly costs down.
Instant equity: You start off with a strong equity position, which protects you if the market dips.

Cons:

You need more saved upfront: This can be tough, especially if you’re juggling other financial goals.
It may slow you down: If it takes years to save 20%, you could miss out on buying sooner—especially if prices keep climbing.

Minimum or Zero Down (FHA, VA, USDA, or Low-Down Options)

Pros:

Easier to get into a home: Great for first-time buyers or anyone who doesn’t have a big nest egg but wants to start building equity.
More cash on hand: You keep more of your savings available for upgrades, emergencies, or life in general.

Cons:

Higher monthly payment: A bigger loan amount means you’ll pay more each month.
More interest over the long run: Because you’re borrowing more, you’ll pay more interest over the life of the loan.
You’ll have mortgage insurance: PMI or MIP usually comes with lower down payments, and yes—it's an added monthly expense.
More risk if prices fall: With less equity, you’re more exposed if the market softens.

Bottom Line

There’s no one-size-fits-all answer. A larger down payment can save you money long-term, but getting into a home sooner—even with little down—can help you start building equity instead of waiting on the sidelines.

If you’re curious what your options look like, message me and I’ll introduce you to a great lender who can break down real numbers for your situation—no pressure, just clarity.