Tampa Bay Real Estate & Mortgage Market Update – April 17: Do You Need 20% Down to Buy a Home? Tampa Bay Buyers Guide

Debunking the 20% down payment myth: most buyers actually qualify for conventional or FHA loans with as little as 3% to 3.5% down. Stay informed on current mortgage rates in the mid-6% range and discover why waiting to save a full 20% might not be your best financial strategy in today's real estate market.

Mortgage expert Rafi Castro breaks down one of the biggest myths stopping buyers today.

For context on whether now is a good time to buy, see Redfin’s analysis: Is Now a Good Time to Buy a House?

Do You Really Need 20% Down?

One of the most common myths in real estate is that you need a 20% down payment to buy a home. The truth is, most buyers put down significantly less.

What Most Buyers Actually Put Down

Conventional loans: as low as 3% down. FHA loans: typically 3.5% down. Down payment assistance programs: available in certain cases

Source: Freddie Mac

Why the 20% Myth Exists?

Putting 20% down helps buyers avoid private mortgage insurance (PMI), but it is not required to purchase a home.

Mortgage Rate Update

Most buyers right now are seeing mortgage rates in the low to mid 6% range depending on credit, down payment, and loan structure. Rates are influenced by the 10-year U.S. Treasury.

Should You Wait or Explore Now?

For many buyers, waiting to save 20% can delay homeownership for years. Understanding your real options can help you make a more informed decision.

Want to Know Your Numbers?

If you’re considering buying a home in Tampa Bay, I can help you understand exactly what you’d need based on your situation.

Rafael ‘Rafi’ Castro
Marymont Financial Services
Phone: 813.469.7568
Phone: 813.590.0031

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