You may have choices below 20%.
Some mortgage programs allow eligible buyers to put less than 20% down. FHA may permit 3.5% for qualifying borrowers, while eligible VA borrowers may have a no-down-payment option under applicable requirements. Conventional choices depend on program eligibility.
A smaller down payment can help preserve cash, but it means borrowing more. It may also affect pricing and mortgage insurance. Ask for side-by-side estimates based on the same property and purchase price.
Mortgage insurance belongs in the comparison.
Conventional loans commonly require PMI when the down payment is under 20%. FHA has its own mortgage insurance rules, and VA financing may involve a funding fee instead of monthly mortgage insurance. These costs are not interchangeable.
For an existing conventional mortgage, ask the servicer about PMI cancellation requirements. Your estimated equity alone is not a guarantee of cancellation.
Plan beyond the down payment.
Closing costs and prepaid expenses are separate from the down payment. Keep cash for the move, maintenance, and unexpected repairs. Compare those needs with the benefits of putting more money into the home.
Gift funds and assistance may be available under specific rules. Ask about donor documentation, income or location restrictions, repayment requirements, and any effect on the first mortgage before relying on them.
Your questions.
Straight answers.
Can I buy with zero down?
Some eligible borrowers may have that option. It does not mean every buyer qualifies or that closing requires no cash.
Is a bigger down payment always better?
It can reduce borrowing and some costs, but keeping cash reserves matters too. Compare the effect on your monthly payment and your overall finances.
Sources
General educational information. Program availability, eligibility, pricing, and documentation depend on your state, property, and application. Ask an expert for current options; this page is not a loan offer or approval.