How much should I put down on a home? Do I really need 20%?

Understand why 20% is not always required

You do not necessarily need a 20% down payment to buy a home. According to the CFPB, some conventional loan options allow smaller down payments, while certain eligible buyers may use programs with little or no down payment. Requirements vary by lender, mortgage program, and property. A 20% down payment can have advantages, including avoiding private mortgage insurance on many conventional loans. However, saving that amount is not the only path to homeownership. A smaller down payment may allow you to buy sooner while keeping more cash available for other needs.

Weigh lower payments against available savings

A larger down payment reduces the amount borrowed and can lower your monthly principal and interest costs. It may also improve loan pricing. On the other hand, placing most of your savings into the home can leave little cash for closing costs, repairs, moving, or emergencies. The CFPB recommends setting aside funds for other goals and an emergency cushion before deciding how much to put down. Remember that loan programs with smaller down payments may include mortgage insurance or other costs. Compare the full payment and long-term cost rather than the down payment percentage alone.

Choose a down payment that fits your plan

Ask lenders to compare several down payment amounts using the same purchase price and mortgage assumptions. Review estimated monthly payments, mortgage insurance, loan fees, and cash remaining after closing. Some buyers may also qualify for down payment assistance programs, subject to eligibility and current funding. Your savings, income stability, and expected maintenance needs should guide the final decision. Buying a home in Pittsburgh with less than 20% down can be practical, but the right amount is the one that leaves your overall finances sustainable. A qualified lender or housing counselor can explain your available options.

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Sources

Consumer Financial Protection Bureau: Determine Your Down Payment; Figure Out How Much You Want to Spend

National Association of REALTORS®: Consumer Guide: Assistance Programs

*Minimum down payments, mortgage insurance, and assistance eligibility vary by program and lender. Confirm terms with a qualified mortgage professional. Includes AI-generated content.