Do I Need 20% Down to Buy a House?
By JC Pacific Corp Published 2026-09-01 Last professionally reviewed: September 2026
No. Many qualified buyers can purchase a home with less than 20% down. The available options depend on eligibility, loan program, property and lender.
Why Do People Mention 20%?
With certain conventional loans, reaching 20% equity at closing may eliminate the need for private mortgage insurance. It may also reduce the loan balance and monthly payment.
Why Might a Buyer Put Less Down?
A buyer may choose to preserve money for:
- Emergency reserves
- Repairs
- Moving
- Furnishings
- Education
- Business
- Investment
- Other financial priorities.
What Are the Tradeoffs?
A smaller down payment may mean:
- Larger loan
- Higher monthly payment
- Mortgage insurance
- Different interest rate
- Greater sensitivity to market declines
- Additional program requirements.
Frequently Asked Questions
Can a first-time buyer put less than 20% down?
Possibly. First-time status is not always required for lower-down-payment financing.
Does less than 20% make an offer weak?
Not automatically. Strong underwriting and a credible preapproval can still create a competitive offer.
Can the seller require 20% down?
The seller evaluates offer terms but does not control the lender's underwriting. Fair-housing and financing laws also apply.
Ask the lender to compare payments, cash requirements and mortgage insurance at several down-payment levels.
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The next step is a conversation with a local agent.
JC Pacific Corp is an Irvine-based Southern California brokerage helping buyers navigate offers, escrow, and financing. Tell us what you are looking for and we will point you to current options across the region.
A note on legal advice: These guides provide general, educational information about California real estate practice. They are not legal advice and do not create an attorney-client relationship. Mortgage information is general education, not individualized lending, tax or legal guidance. For advice about your specific offer, contract, closing or financing, consult a qualified California real estate attorney and a qualified mortgage professional.