How much do I really need for a down payment on my first house?

BuyingAnswered by the Loveless team · Licensed in MD, DC & VA·Originally asked on Reddit r/FirstTimeHomeBuyer
Quick answer

Often far less than 20% — many first-time buyers put down 3–5% (or less with FHA, VA, or Maryland assistance programs). The right number balances your payment, mortgage insurance, and cash reserves.

Less than most first-time buyers assume. The old “20% down” rule is a myth for most purchases today — it is one way to avoid mortgage insurance, not a requirement to buy.

Conventional loans can start around 3–5% down for qualified buyers. FHA loans go as low as 3.5% down. VA and USDA loans can reach 0% down for those who qualify. And in Maryland, state and county down-payment assistance programs can cover part of your down payment or closing costs.

So what number should you actually plan for?

The right down payment balances three things: your monthly payment, whether you will pay mortgage insurance, and how much cash you keep in reserve after closing. Putting every dollar into the down payment and leaving nothing for moving, repairs, or emergencies is a common first-time mistake.

Before you shop, get pre-approved so you know your real budget — and ask about the assistance programs specific to your county. We are glad to run your exact numbers in a free consultation.

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