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Can You Own a Home at Less Than 20 Percent Down? Realtors Say Yes

There was a time when the main obstacle to homeownership was the required 20% down payment for a mortgage. Today, more people are buying homes with less money down.

Putting a full 20% down on mortgage may opt you out of paying for private mortgage insurance (PMI) and may get you a better interest rate, but it is not the only path to home ownership, nor will it guarantee you the lowest mortgage payment possible.

Buying a home with less money down isn’t uncommon and in some cases, new buyers are able to do so with no money down. Real-estate agents agree. They say the benefits of making a smaller down payment are many. Doing so can help homeowners build equity at a faster rate— even with a higher interest rate. The faster you build up equity, the sooner you will be able to stop paying the PMI portion of your mortgage and see a drop in your mortgage payment.

Home ownership is one of the keys to building wealth. Now that there are more financing options above and beyond the traditional 20 percent down threshold, the American Dream is a little bit more accessible.

What do you think about these new trends in the housing market? Tell us in the comments below. You can also contact us for more information! Feel free to shoot us an email to You can also find us on TwitterFacebook, InstagramLinkedIn, or even connect with us directly on our website!

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About the Author: Aisha K. Staggers is a writer, lecturer, political analyst and literary agent. She appears weekly for “Staggers’ State of Things” on the Dr. Vibe Show. Her work has been published by Paper Magazine, AfroPunk, The Spool, GREY Journal, MTV News, HuffPost, Blavity, Atlanta Blackstar, For Harriet, New York Review of Books and a host of other first-run publications and syndicated outlets. Find her on Twitter @AishaStaggers. For more of her work, check out her page here!

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