The 20% Down Payment Myth: What Today’s Buyers Need To Know
At Corken + Company, one of the most common assumptions we hear from buyers is that they need to save 20% for a down payment before purchasing a home. For many, that number feels out of reach—and it can delay their plans unnecessarily.
But the truth is, you don’t need to put 20% down to become a homeowner in 2025. In fact, many buyers are putting down far less and successfully closing on homes every day.
What’s Behind the 20% Myth?
Traditionally, a 20% down payment was seen as the gold standard because it helps avoid private mortgage insurance (PMI) and can lead to lower monthly payments. But times have changed. Today’s mortgage products are more flexible, and many reputable loan options are available with much smaller down payments.
According to recent data, the median down payment for all homebuyers is around 15%, and for first-time buyers, it’s even lower—often closer to 6–7%.
What Are Your Real Options Today?
Depending on your financial picture and the type of loan you qualify for, you could buy a home with as little as:
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3% down with a conventional loan (for qualifying first-time buyers)
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3.5% down with an FHA loan
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0% down with a VA or USDA loan (for eligible buyers)
These programs are designed to make homeownership more accessible, especially for buyers who have strong credit and stable income but haven’t had years to save a large lump sum.
Does a Lower Down Payment Mean Higher Risk?
Not necessarily. Lenders today assess a full financial picture—including credit score, income, debt, and reserves. With Corken + Company on your side, we help you connect with trusted lenders who can walk you through options that balance upfront costs with long-term financial comfort.
In some cases, paying less upfront and keeping cash in reserves can actually be a smarter move, especially when it helps you maintain flexibility for future repairs, upgrades, or investment opportunities.
Understanding PMI and How To Manage It
Yes, putting down less than 20% usually means you’ll pay private mortgage insurance. But PMI isn’t forever. It can often be removed once you reach 20% equity through regular payments or appreciation in home value. We’ll help you understand how that works, and how to plan for its eventual removal.
The Bigger Risk? Waiting Too Long
For many buyers, waiting to save 20% means staying stuck in rising rental markets or missing out on years of potential equity growth. With Denver’s home prices gradually climbing again and more buyers reentering the market, now might be the perfect time to explore what’s possible—even if you haven’t hit that traditional 20% goal.
Let’s Find the Right Path for You
Your down payment doesn’t need to hold you back. With the right financing, smart budgeting, and expert advice, homeownership could be closer than you think.
At Corken + Company, we help buyers of all backgrounds find a strategy that works—whether you’re putting 20% down or just getting started. Our brokers work closely with trusted lenders to help you understand every option and make empowered decisions from day one.
Get Pre-Approved, Get a Plan, Get Moving
If you’re ready to explore what buying a home could look like for you, we’re ready to guide the way. Let’s take the first step together—with clarity, transparency, and no pressure.
Call 303-858-8003 or visit www.corken.co to schedule a buyer consultation with our team today.
