The Biggest Myth About Buying a Home: You Need 20% Down

If you’ve spent any time researching how to buy a home, you’ve probably heard the same advice over and over:

“You need 20% down.”

For many people, that number feels impossible. On a $350,000 home, 20% would mean saving $70,000 before you could even think about buying.

The reality? Many homebuyers purchase a home with much less.

Depending on the type of loan and your financial situation, you may qualify for programs that offer low down payment options or assistance programs designed to help make homeownership more accessible.

The first step is understanding what options are available to you — not assuming you need years of savings before starting the conversation.

What Costs Should You Expect When Buying a Home?

While the down payment is usually the cost buyers focus on, it’s only one piece of the puzzle.

Here are some of the expenses to plan for:

1. Your Down Payment

Your down payment is the portion of the home’s purchase price that you pay upfront.

The amount required varies based on the loan program you choose, your financial profile, and other factors.

The good news is that many qualified buyers may be able to purchase a home with a lower down payment than they expected.

2. Closing Costs

Closing costs are the fees associated with finalizing your mortgage and purchasing your home.

These costs may include:

• Loan-related fees
• Title and settlement services
• Appraisal fees
• Recording fees
• Prepaid property taxes and homeowners insurance

Many buyers are surprised to learn that closing costs can be a significant part of their upfront expenses, so it’s important to plan for them early.

3. Home Inspections

While not always required by the lender, a home inspection is one of the most valuable investments you can make during the buying process.

An inspection can help identify potential issues with the home before you finalize your purchase and may help you avoid expensive surprises after moving in.

4. Moving & Initial Home Expenses

The first few months of homeownership often come with additional costs such as:

• Moving supplies and services
• Furniture or appliances
• Utility deposits
• Minor repairs or updates
• Lawn equipment or household essentials

Planning for these expenses can make your transition into homeownership much less stressful.

First-Time Home Buyer Programs in Florida

Many first-time buyers don’t realize that Florida offers programs designed to help make homeownership more achievable.

Depending on your qualifications, you may be eligible for programs that provide assistance with down payments and closing costs.

These programs can be especially helpful for buyers who have stable income but haven’t had the opportunity to build a large savings account.

The key is working with a knowledgeable mortgage professional who can help you understand what programs you may qualify for.

How Much Should You Save Before Buying a House?

There is no one-size-fits-all number.

The amount you’ll need depends on:

• The price range of the homes you’re considering
• Your loan program
• Your credit and financial profile
• Whether you qualify for assistance programs
• Your comfort level with your emergency savings after closing

A conversation with a mortgage professional can help you create a realistic plan based on your personal goals — whether you’re ready to buy now or preparing for the future.

Frequently Asked Questions

Can I buy a house with no money down in Florida?

Some qualified buyers may be eligible for loan programs that require no down payment or offer assistance with upfront costs. Eligibility depends on factors such as your financial situation, loan type, and location.

Do I need a 20% down payment to buy a house?

No. Many homebuyers purchase a home with less than 20% down. The right loan option depends on your individual financial situation and goals.

Are there first-time home buyer programs in Florida?

Yes. Florida offers various programs designed to assist eligible first-time buyers with down payments and closing costs.

The Bottom Line

The biggest mistake many people make is assuming they can’t afford to buy a home without first understanding their options.

Homeownership may be closer than you think.

Whether you’re ready to start house hunting today or you simply want to create a plan for the future, understanding your numbers is the first step toward making a confident decision.

Let’s Create a Plan That Works for You

Pretty Smart Money was created to make financial topics easier to understand and help you feel empowered to make informed decisions.

If you have questions about homeownership or want to explore your mortgage options, Jennifer is here to help you understand your next steps.