If you’ve been putting off buying a home because you’re waiting to save 20% down, take a breath. You may be closer than you think.
I talk to people every week who’ve been saving for years toward a number they didn’t actually need. Let’s walk through it together.
Where the 20% Myth Comes From
Twenty percent isn’t a rule. It’s a threshold. Put 20% down on a conventional loan and you typically avoid private mortgage insurance (PMI). That’s a real benefit, but it was never a requirement to buy. Somewhere along the way, “you can avoid PMI at 20%” turned into “you need 20% to buy,” and a lot of would-be homeowners have been sitting on the sidelines ever since.
Loan Options Available in Butte County
Here’s what most buyers in our area actually have access to:
- USDA loans, zero down. Much of Butte County qualifies as an eligible area. For eligible buyers, that means no down payment at all. Most people have never been told they qualify.
- First-time buyer grants in Paradise and Oroville. Money that does not need to be repaid. Most buyers find out about these too late to use them.
- FHA loans, as little as 3.5% down. A common path for first-time buyers, with more flexible credit requirements.
- Conventional loans with less than 20% down. Yes, you’ll pay PMI for a while, but you’ll also be building equity instead of paying someone else’s mortgage.
What Down Payment Amount Is Right for You?
More down isn’t automatically better. A larger down payment lowers your monthly cost, but it also ties up cash you might want for moving, repairs, or simply peace of mind. The right number depends on your goals, your timeline, and which loan program fits your situation, and that’s a conversation worth having before you decide you’re not ready.
Next Steps
If you’re assuming you’re not ready yet, let’s actually run the numbers. Sometimes the honest answer is “keep saving for a few more months”, and sometimes it’s “you could have bought last year.” Either way, you deserve to know.
Ask me anything. That’s exactly what I’m here for.