# Think You Need 20% Down? Think Again. By George Koutsos (@georgekoutsos) · Published 2026-10-05 Canonical: https://voce.com/@georgekoutsos/think-down-iscaih --- **By George Koutsos, Senior Vice President, CrossCountry Mortgage** I talk to potential first-time homebuyers all the time who tell me some version of the same thing: **“I want to buy a home, but I'm not ready yet.”** When I ask why, the answer is often that they think they need 20% down, perfect credit, or considerably more money in the bank before buying a home is even worth discussing. Sometimes they're right that they need more time. A lot of times, they're not. Buying your first home doesn't necessarily start with having everything figured out. It starts with understanding where you are today, what options may be available, and what, if anything, needs to happen to get you ready. ## You May Not Need 20% Down This is probably the biggest misconception I hear from first-time buyers. Twenty percent down can have advantages, but it isn't a universal requirement. Some conventional mortgage programs allow qualified buyers to purchase with as little as 3% down. FHA financing can allow down payments as low as 3.5% for eligible borrowers. [Fannie Mae](https://yourhome.fanniemae.com/buy/homeready?utm_source=chatgpt.com) For a first-time buyer, that's a very different conversation than assuming you need to save $100,000 to purchase a $500,000 home. There may also be options for where those funds come from. Depending on the loan program and the buyer's circumstances, gift funds, grants and other eligible sources may be used toward down payment and closing costs. [Fannie Mae](https://singlefamily.fanniemae.com/learning-center/originating-and-underwriting/faqs-97-ltv-options?utm_source=chatgpt.com) The point isn't that everyone should buy with the smallest possible down payment. It's that **you shouldn't assume 20% is the price of admission.** ## There May Be Assistance Available Too For buyers in Massachusetts, there are also programs specifically designed to help eligible first-time homebuyers overcome the upfront cost of purchasing. MassHousing currently offers eligible first-time buyers down payment assistance of up to **$30,000**, available for purchases throughout Massachusetts when paired with an eligible MassHousing mortgage. Individual cities and towns may have additional programs as well. [MassHousing](https://www.masshousing.com/buy-a-home/programs/downpayment-assistance/?utm_source=chatgpt.com) Not everyone will qualify, and the terms and eligibility requirements matter. But that's exactly why it's worth having the conversation before deciding homeownership is out of reach. ## What If My Credit Isn't Perfect? That's another reason people wait. They've had a late payment. Their credit score isn't where they'd like it to be. They carry some credit-card debt or student loans. They assume the answer will be no. Maybe there's work to do. Maybe there isn't. Different mortgage programs have different credit and qualification requirements. FHA financing, for example, was specifically designed with more flexible qualification features than many buyers expect. [HUD](https://www.hud.gov/buying/loans?utm_source=chatgpt.com) The important thing is knowing where you actually stand. If there is something keeping you from qualifying today, I'd rather identify it now and give you a clear path forward than have you spend the next year guessing about what you need to fix. ## What If I'm Not Planning to Buy for Six Months or a Year? That's actually a great time to talk. You don't need to call me when you've already found the house. If you're six months or even a year away, we have time to look at your income, credit, savings and the price range you're considering. Maybe you're closer than you think. Maybe there are two or three specific things we can work on. Maybe increasing your savings by a certain amount changes the picture. Maybe improving something on your credit does. Or maybe you discover that you're already in a position to start looking. Either way, you replace uncertainty with a plan. ## What Can We Figure Out Before You Start Looking at Homes? A lot. Before you start spending weekends walking through open houses, we can help you understand what a realistic purchase price looks like, what the approximate monthly payment could be, how much cash you may need and which financing options might fit your situation. And I think the monthly payment deserves particular attention. Being approved for a certain amount doesn't mean you have to spend that amount. My goal isn't to tell you the maximum house you can buy. It's to help you understand the numbers so **you can decide what feels comfortable for you.** Once we know that, your Realtor has a much clearer target and you can begin looking at homes with confidence instead of wondering whether the financing will work. ## Your First Conversation Doesn't Have to Be a Mortgage Application This may be the most important thing for a first-time buyer to understand. You don't need to have everything figured out before talking to us. You don't need to know which loan program you want. You don't need to know exactly how much you can afford. And you certainly don't need to have already found a house. That's our job. We'll look at where you are, answer your questions, explain the options that may be available and help you understand what the next step looks like. If you're ready now, great. If you're not, that's okay too. At least you'll know what needs to happen next. After more than 35 years helping people finance homes, I've learned that first-time buyers often aren't as far away from homeownership as they think. Sometimes they simply need a plan. **You don't need to be ready to buy a home to talk to me. Talk to me to find out what being ready looks like.** **George Koutsos** Senior Vice President CrossCountry Mortgage 781-864-0889 [george@teamGK.com](mailto:george@teamGK.com) [GeorgeKoutsos.com](http://GeorgeKoutsos.com) NMLS 29613 _Loan programs are subject to borrower and property eligibility, underwriting approval and program requirements. Down payment assistance programs are subject to income, property, geographic and other eligibility requirements and may change or become unavailable. This article is for informational purposes only._