The Myth That’s Holding Buyers Back
You’ve probably heard it before: “You need 20% down to buy a house.”
It’s one of the biggest misconceptions in real estate — and it’s keeping way too many hopeful buyers sitting on the sidelines.
It’s one of the biggest misconceptions in real estate — and it’s keeping way too many hopeful buyers sitting on the sidelines.
In reality, most homeowners in the Dallas–Fort Worth area didn’t put anywhere near 20% down. Many qualified buyers purchase with 3% to 5% down, and some with even less.
Let’s break it down — because understanding this one truth could mean the difference between waiting years and owning your home now.
How Much You Actually Need to Buy
Depending on your loan type, here’s what’s possible:
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Conventional Loan: As little as 3% down for qualified buyers.
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FHA Loan: Just 3.5% down — one of the most common first-time buyer options.
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VA Loan: 0% down for eligible veterans and active-duty service members.
USDA Loan: 0% down for buyers in select rural areas (yes, even parts of Denton, Justin, and Northlake may qualify).
💡 Pro Tip: Your lender can show you what you qualify for in minutes — no commitment needed. You might be surprised how close you already are to owning a home.
Why the 20% Number Exists
The 20% “rule” isn’t wrong — it’s just outdated.
Putting 20% down used to be the standard to avoid Private Mortgage Insurance (PMI), which protects the lender if you default on your loan.
Putting 20% down used to be the standard to avoid Private Mortgage Insurance (PMI), which protects the lender if you default on your loan.
But PMI isn’t the villain it’s made out to be:
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It’s often less than one fancy dinner out per month.
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It can be removed once you reach 20% equity.
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And it allows you to start building equity years sooner.
So instead of saving forever, you can own sooner and let your home’s value appreciation do the work for you.
Why Waiting Can Cost You More
Let’s say you’re saving for a 20% down payment on a $450,000 home — that’s $90,000.
If home prices rise just 4% in a year (the average in DFW), that same home could cost $468,000 by the time you hit your goal.
If home prices rise just 4% in a year (the average in DFW), that same home could cost $468,000 by the time you hit your goal.
That means you’re chasing a moving target — and the longer you wait, the higher the bar gets.
Meanwhile, buyers who purchased sooner are already:
✅ Building equity
✅ Writing off mortgage interest
✅ Enjoying appreciation instead of trying to catch up to it
✅ Building equity
✅ Writing off mortgage interest
✅ Enjoying appreciation instead of trying to catch up to it
Real Stories from the DFW Market
In markets like Flower Mound, Frisco, and Argyle, we’re seeing first-time buyers get creative — pairing low-down-payment loans with seller credits or builder incentives to cover closing costs or buy down their interest rates.
The result? They’re becoming homeowners sooner, without draining every dollar of savings.
Many builders in Justin, Northlake, and Little Elm are even offering 2-1 rate buydowns or lender credits that make monthly payments more manageable right now.
The Bottom Line
You don’t need to wait for 20% — you just need the right plan.
Working with a knowledgeable DFW real estate team and a trusted local lender can open doors (literally). Together, we’ll help you:
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Explore low-down-payment options
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Maximize incentives and credits
Understand the long-term costs and benefitsWhether you’re ready to buy this month or just exploring your options, we can help you build a strategy that fits your budget and goals.