Thinking You Need 20% Down?
đź’° Think You Need 20% Down? Think Again! Here’s the Real Truth About Home Financing in Today’s Market
When most people start thinking about buying a home, the phrase “20% down” often pops into their heads. It’s one of the most common real estate myths—and for many, it’s a major reason they delay starting their homeownership journey. But here’s the good news: you do not need 20% down to buy a home in today’s real estate market. In fact, that outdated advice may be keeping more buyers on the sidelines than necessary.
Let’s dig deeper into what today’s buyers actually need—and how local markets like Kearney, Nebraska offer even more affordable pathways to homeownership.
🏡 Today’s Mortgage Landscape: Low Down Payment Options
Thanks to a wide range of flexible loan programs, buyers have access to financing that fits their unique financial situation. Here’s a quick breakdown:
- FHA Loans (Federal Housing Administration):
One of the most popular options for first-time homebuyers, FHA loans require just 3.5% down. These loans also have more relaxed credit score requirements, making them accessible to more buyers. - Conventional Loans:
Many people are surprised to learn that some conventional loans now allow for as little as 3% down—especially for first-time or income-qualified buyers. - 1% Down Payment Programs:
Select lenders are offering 1% down programs, where the lender contributes an additional 2% toward your down payment, helping you reach 3% equity faster. - VA Loans (Veterans Affairs):
For qualifying veterans, active-duty service members, and some surviving spouses, VA loans offer 0% down with no private mortgage insurance (PMI)—a huge advantage in affordability and monthly payment. - USDA Rural Development Loans:
These also offer zero down payment and are available in many rural and semi-rural areas, including parts of Central Nebraska. This can be a game changer for families looking for space, community, and value.
đź“Ť What This Means for Buyers in Kearney & Central Nebraska
With home prices steadily rising and inventory remaining competitive, waiting to save 20% could mean missing out on the right home. In communities like Kearney, Gibbon, Shelton, Minden, and Amherst, USDA eligibility opens the door for buyers who want to keep more cash in their pocket.
In a market where homes often receive multiple offers, being financially prepared with a strong pre-approval—even with a lower down payment—can still make you a serious contender. The key is working with experienced local agents and lenders who understand these options inside and out.
đź’ˇ The Power of Combining Loans with Local Assistance
Many buyers don’t realize they may qualify for down payment assistance programs, state housing grants, or even employer-sponsored homebuying incentives. In Nebraska, programs like NIFA (Nebraska Investment Finance Authority) provide great tools and education for new homeowners, especially first-time buyers.
When you pair a low down payment loan with closing cost assistance, proper budget planning, and expert guidance, the path to homeownership becomes not only realistic—but achievable.
🛠️ Debunking the 20% Myth
Here’s the truth:
- You do NOT need 20% down.
- You DO need a strong team to guide you.
- And you CAN own a home with the right strategy.
While putting down 20% may help you avoid mortgage insurance and lower your monthly payments, it’s not the only route. In fact, many successful homeowners today purchased with far less and built equity quickly through smart home selection and steady market growth.
🤝 How Rooted Realty Group Can Help
At Rooted Realty Group, we believe homeownership is possible for everyone, and we’re passionate about helping you get there. Our team partners with trusted local lenders to help you:
- Explore the best loan programs for your budget
- Connect with down payment assistance opportunities
- Understand the true costs of homeownership
- Navigate the process from pre-approval to closing day
We’ll help you feel informed, confident, and empowered to make the move—whether you’re buying your first home or your fifth.