Tap any option · Higher % = lower monthly payment
Want help actually saving this? 🌸
The Peachy Budget Game breaks big goals into small weekly challenges with visual trackers. 15+ games — including a $10K savings challenge perfect for a down payment fund.
Do You Actually Need 20% Down? 🤔
Short answer: No. The 20% "rule" is one of the most persistent myths in personal finance. Here's the real picture:
The 20% mark matters because it lets you avoid PMI (private mortgage insurance — usually $50–$200/month extra). But that doesn't mean it's the only smart choice.
📊 What Do People Actually Put Down?
First-time buyers typically put down 6–8%. Repeat buyers tend to put down more — often using equity from their previous home. You don't have to wait until you have 20% saved to buy.
🏦 First-Time Buyer Loan Options
FHA Loans
3.5% down. More flexible credit requirements. Great for first-time buyers.
Conventional 97
3% down. Fannie Mae / Freddie Mac backed. Good credit needed.
HomeReady / HomePossible
3% down. Designed for moderate-income buyers. Reduced PMI rates.
Down Payment Assistance
Many states + cities offer grants or low-interest loans to help cover your down payment.
✅ Why 20% Down Is Great (If You Can)
Benefits
- No PMI — saves $50–$200/mo
- Lower monthly payment
- More equity from day one
- Stronger offer in competitive markets
Drawbacks
- Takes much longer to save
- Delays homeownership by years
- Ties up cash that could invest
- Market may rise while you wait
Bottom line: There's no universally right answer. Use this calculator to see what makes sense for your timeline — and remember: you don't have to rush this. 🍑