Accurate information is the foundation of smart decision-making, especially when it comes to buying a home. Unfortunately, one of the most persistent myths in real estate is that you need a 20% down payment to purchase a house. This misconception holds many potential homeowners back, particularly first-time buyers. But here’s the truth: you don’t need 20% down to buy your dream home.

If you’re a first-time homebuyer—or even if you’ve owned property in the past but meet certain criteria, you may qualify for programs that make homeownership more affordable and accessible. Let’s break it all down and explore the many ways you can buy a house without a 20% down payment, especially if you’re looking to settle in San Antonio or surrounding areas.

Who Qualifies as a First-Time Homebuyer?

You might think that a first-time homebuyer is someone who has never owned a home. While that’s true, the Department of Housing and Urban Development (HUD) also includes the following under its definition:

• Individuals who haven’t owned a principal residence in the past three years.
• Single parents or displaced homemakers who previously owned property with a spouse.
• People who owned property that wasn’t permanently affixed to a foundation (like a mobile home).

If any of these apply to you, you may qualify for special first-time homebuyer programs designed to lower barriers to homeownership.

8 Ways to Buy a Home Without 20% Down

Here are some fantastic options to help you secure a home with a lower down payment:

1. Federal Housing Administration (FHA) Loans

• Down Payment: As low as 3.5%
• Best For: First-time homebuyers or those with moderate credit scores.
  FHA loans are government-backed, making them more accessible to buyers who may not qualify for conventional loans. However, mortgage insurance premiums (MIP) are required.

2. Department of Veterans Affairs (VA) Loans

• Down Payment: 0%
• Best For: Eligible veterans, active-duty military, and their families.
  VA loans are a fantastic benefit for military families, offering no down payment, competitive rates, and no private mortgage insurance (PMI).

3. U.S. Department of Agriculture (USDA) Loans

• Down Payment: 0%
• Best For: Buyers in rural and suburban areas.
  USDA loans are perfect for homes in eligible areas around San Antonio. These loans cater to moderate- to low-income buyers and offer 100% financing.

4. Conventional 97 Loans

• Down Payment: 3%
• Best For: First-time buyers with good credit.
  This program, offered by Fannie Mae and Freddie Mac, allows for low down payments but requires private mortgage insurance (PMI) until you reach 20% equity.

5. HomeReady and Home Possible Loans

• Down Payment: 3%
• Best For: Low- to moderate-income buyers.
  These programs offer reduced PMI costs and flexible qualification criteria, making them excellent options for buyers looking to stretch their budgets.

6. Down Payment Assistance Programs

• Best For Buyers needing help with upfront costs.
  State and local programs provide grants, forgivable loans, or low-interest loans to assist with down payments and closing costs. San Antonio and Bexar County offer several such programs for first-time buyers.

7. Piggyback Loans (80-10-10)

• Down Payment: 10%
• Best For: Buyers avoiding PMI.
  This strategy involves taking out a first mortgage for 80%, a second mortgage for 10%, and putting 10% down, allowing you to bypass private mortgage insurance.

8. Good Neighbor Next Door Program

• Down Payment: As low as $100
• Best For: Teachers, firefighters, police officers, and EMTs.
  This HUD program offers significant discounts on homes in revitalized areas, making it easier for community heroes to purchase a home.

Why You Need Professional Guidance

Navigating these programs can be overwhelming. Consulting with a mortgage professional or real estate agent ensures you understand your options and find the best fit for your financial situation. Whether you’re a first-time buyer or simply looking for a smart way to invest in a home, getting informed is your first step toward making the right decision.

Ready to Buy in San Antonio? Let’s Talk!

If you’re considering buying a home in San Antonio or the surrounding areas and don’t know where to start, I’m here to help. As a local real estate professional, I can guide you through your options and connect you with trusted lenders who can make your dream of homeownership a reality.

Call, text, or DM me today, and let’s explore how we can find the perfect home for you—without the 20% myth holding you back!

Your Dream Home Awaits. Let’s Make It Happen!