2025 Down Payments for Buying a House: VA, FHA, USDA, and More

One of the most common misconceptions we hear from homebuyers is: “Don’t you need 20% down to buy a house?”
Short answer: No, you don’t.

Longer answer: While it’s true that putting 20% down eliminates mortgage insurance, you don’t need that much to get started. Most buyers put far less down. The typical down payment for first time buyers comes to around 8%.

Additionally,  mortgage insurance isn’t nearly as expensive as people think. In many cases waiting to save 20% can cost you more in the long run due to rising home prices. It’s always worth talking to us to find out what mortgage insurance would actually cost for your situation, it’s often surprisingly affordable.

Let’s break it down by loan type, so you can see just how accessible homeownership really is. Below we have our programs listed at the lowest down payments per respective guidelines:

Conventional Loans

• 3% down for first-time homebuyers
• 5% down for most primary residence buyers
• 5% down also applies to 2–4 unit properties if you’re living in one of the units
• Vacation homes and investment properties require higher down payments

FHA Loans

• 3.5% down with credit scores 580 and above
• 10% down with scores from 500–579
• More flexible on credit and debt-to-income ratios

USDA Loans

• 0% down
• Available in eligible rural areas
• Income limits apply

VA Loans

• 0% down
• For eligible veterans, active duty military, and certain surviving spouses
• No monthly mortgage insurance and typically better rates than conventional
• VA funding fee waived with 10%+ disability rating

Oregon Flex Lending Programs

The Flex Program is a Down Payment Assistance (DPA) program designed to help cover your required down payment.

• First Home and Next Step programs
• Available for households earning under $125,000 in qualifying income
• Offers repayable down payment assistance of 4–5% of the loan amount
• Can be used toward down payment and/or closing costs
• Works in combination with Conventional, FHA, VA, or USDA loans
• Slightly higher monthly payments, but a great option if you’re short on funds
• View Oregon Flex rates here https://www.oregon.gov/ohcs/homeownership/lenders-real-estate-professionals/Pages/firsthome-lenders.aspx

We handle this program in-house and walk you through the whole process.

Non-QM & Alternative Loan Options

• Ideal for self-employed buyers, unique income situations, or investors
• Down payment and qualifications vary based on credit score, property type, and loan structure
• Tailored to your scenario—let’s talk about what fits

Bottom Line

You don’t need 20% down to buy a house. You just need to know your options, and that’s where I come in. There is a lot more info about all of these programs, so feel free to reach out with any questions.

When you apply with us, we’ll show you every program you qualify for, side-by-side, and help you choose the best one for your goals and budget. Whether you’ve got 10% down, 0% down, or something in between, we’ve got you covered.

Let’s talk about what works for you.
Apply online at mattboytz.zipforhome.com, call or text me at 541-359-7212, or email me at Matt@BendMortgageBrokers.com.

Disclaimers- Conventional 3% Down 6.5% Rate/ 7.282% APR, USDA 0% Down 5.625% Rate/ 6.235% APR, VA 0% Down 5.625% Rate/ 5.995% APR, FHA 3.5% Down 5.625% Rate/ 6.504% APR.  All APR rates are based on mortgage rates today as of 4/4/25 assuming 760 FICO $400,000 loan amount, owner occupied dwelling purchase, first time home buyer on Conventional.

Matt Boytz
Direct: 541-359-7212
Office: 541-972-8616
NMLS 1294957
NMLS 2552455
Matt@BendMortgageBrokers.com
Apply Now!
www.BendMortgageBrokers.com