The 20% down myth
So many people rule themselves out of home shopping before they even start, carrying a low down payment myth in their head that isn’t actually a requirement.
The most common first-time home buyer down payment question I get is also the one holding people back the most: do you really need 20% down? If I had to guess the biggest reason someone says “I’m not ready to buy,” it’s this. They think they do.
First-time home buyer down payment minimums, by loan type
Here’s what’s true. Conventional loans can go as low as 3% down for qualifying buyers. For example, FHA loans start at 3.5% down. VA and USDA loans, for those who qualify, can go all the way to 0% down.
So why does the myth stick around? Twenty percent avoids private mortgage insurance (PMI), keeps your loan balance lower, and sometimes gets you a better rate. Those are real trade-offs worth knowing. But they’re not a locked door standing between you and a home.
First-time home buyer down payment assistance in South Florida
Here in South Florida, there’s another layer worth knowing: local down payment assistance. Florida Hometown Heroes gets the most attention, but it’s not the only option. In fact, Miami-Dade and Broward County both run their own Homebuyer Down Payment Assistance Programs. These come with income limits, purchase price caps, and a required homebuyer education course.
Funding shifts throughout the year. The numbers you see online today may not be the numbers by the time you’re ready to apply. I’d rather walk you through what’s currently open than have you rule yourself out based on outdated info.
Why monthly payment matters more
Here’s the part I want you to sit with: a low down payment doesn’t automatically mean a low monthly cost. That’s the piece people miss when they fixate on the 20% number. In fact, your real monthly payment is shaped by more than the loan amount. Think rate, PMI if it applies, property taxes, insurance, and (in South Florida especially) HOA dues.
So instead of asking “do I have 20% saved,” ask a better question. What monthly payment can I actually live with, and which loan programs get me there? That’s worth figuring out early, before you fall for a home that doesn’t fit your budget. (If a condo is part of your search, it’s also worth reading up on this year’s condo financing rule changes, since building-level issues can affect approval too.)
If you’ve been sitting on the sidelines because of the 20% number, find out now whether that’s the real barrier. Every first-time home buyer down payment conversation I have starts with the same question: what can you actually afford, not what you’ve been told you need.
Choosing More
I sat with a message this weekend I haven’t been able to shake. In fact, it drew a line between failure and something it called “deliberate mediocrity.” Knowing you’re capable of more and choosing the smaller version anyway.
It hit differently next to everything I’ve been talking to first-time buyers about lately. So many people don’t stay renters because they can’t move forward. They stay stuck because somewhere along the way, they decided the bigger version of their life wasn’t for them. And they stopped checking.
Low expectations are fear wearing a disguise. Settling isn’t neutral, it’s a quiet decision to live beneath what’s possible for you. Growth was never meant to be measured by who’s watching anyway.
I’ve been repeating a line to myself all week: “I am about to walk into the most abundant, balanced, wealthy, and successful period of my life, filled with love.” Not as a wish. But as a decision. I’m not just building a business. I’m building a life I don’t need to escape from.
Ultimately, whatever “more” looks like this season, home, career, faith, I hope you keep choosing it on purpose.
If you’re ready to stop guessing, I recommend NestGen, a homebuying masterclass built for first-time buyers. It breaks down budgeting, creative financing, pre-approval, insurance, and the closing process into clear, actionable steps, plus you get a dedicated homebuying coach and smart tools to help you buy with confidence.
Catch up on the Blog
Thank you so much for reading my Blog! I look forward to providing value to your homeownership journey. If you would like to stay up to date with The Fairee Dispatch please subscribe below!
Ashlae Guilliams
Spanish 
English 
Russian