Can I buy a home with less than 20% down payment?

Yes, many loan programs allow down payments well below 20%. Conventional loans are available with as little as 3% down for first-time buyers (Fannie Mae HomeReady and Freddie Mac Home Possible programs). FHA loans require 3.5% down with a 580+ credit score. VA and USDA loans offer 0% down for eligible borrowers. The trade-off for lower down payments is usually mortgage insurance, which adds to your monthly costs. A smaller down payment also means a larger loan balance and more total interest paid. Down payment assistance programs from state housing agencies can help bridge the gap for qualifying buyers.