Down Payments and Credit Scores: What You Actually Need to Buy a Home

Down payments and credit scores are two of the most common concerns buyers have when considering homeownership. Many people delay buying a home because they believe they need a 20% down payment and perfect credit — but that simply isn’t true.

When it comes to down payments, many buyers put down far less than 20%. Depending on the loan program and your personal goals, down payments often range from 3% to 10%. There are also programs specifically designed for first-time buyers, veterans, educators, and medical professionals, each with different requirements and benefits.

Credit scores are often misunderstood as well. You don’t need flawless credit to qualify for a mortgage. Many conventional loans begin around a 620 credit score, and FHA loans can allow for lower scores. Lenders look at your full financial picture, including income, employment history, savings, and overall stability — not just a single number.

A common mistake buyers make is waiting until their down payment and credit score feel “perfect” before speaking with a lender. In reality, lenders are there to provide guidance and clarity. Even a brief conversation can help you understand where you stand and what steps, if any, could improve your options.

Having accurate information early replaces uncertainty with confidence. When buyers understand their numbers, they can plan intentionally instead of assuming homeownership is out of reach.

If you’d like a quick, no-pressure assessment, I can connect you with trusted lenders who can walk you through your options and answer your questions.