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How Much Do You Really Need Down? The Truth About Conventional Loan Down Payments
- Arlie Janet Bagongon
- Oct 14
- 3 min read
Written by Kimberly Smith - Your trusted Las Vegas Real Estate Queen
For many Las Vegas buyers, the dream of homeownership feels just out of reach — not because they can’t afford a mortgage, but because they think they need a massive down payment to get started. That belief stops more potential homeowners than rising prices or interest rates ever could.
Here’s the truth: you don’t need 20% down to buy a home. Conventional loans offer flexible options that make homeownership more achievable than most people realize.
Let’s break it down — the myths, the facts, and the strategies that help you move from saving to owning.
1. The 20% Myth — Why It Persists
The “20% down” rule has been around for decades, but it’s largely outdated.While putting 20% down can help avoid mortgage insurance and reduce monthly costs, it’s not required for most buyers — especially in today’s market.
In fact, many Las Vegas homeowners started with far less.With conventional financing, qualified buyers can purchase a home with as little as 3% to 5% down, depending on credit and income.
Common Down Payment Options:
3% down: For first-time or moderate-income buyers through Fannie Mae HomeReady® or Freddie Mac Home Possible®.
5% down: Standard for repeat buyers or those seeking more flexibility.
10–15% down: Reduces private mortgage insurance (PMI) faster.
20% down: Eliminates PMI entirely.
💡 Real Estate Queen Tip: Waiting to save 20% could cost you more than it saves. Getting in earlier means building equity now — not later.
2. What You Should Know About PMI
When you put less than 20% down, you’ll typically pay Private Mortgage Insurance (PMI).But here’s what most people don’t realize: PMI doesn’t last forever.
It automatically ends when your loan balance reaches 78% of your home’s original value.
You can request removal once you reach 20% equity through payments or appreciation.
Some lenders offer lender-paid PMI, where they cover it upfront in exchange for a slightly higher interest rate.
💡 Real Estate Queen Tip: Think of PMI as a temporary bridge — it helps you own sooner, and once your equity grows, it’s gone for good.
3. Using Gift Funds or Assistance to Boost Your Buying Power
If saving feels slow, you’re not out of options.Conventional loans allow gift funds from family to cover some or all of your down payment, as long as it’s properly documented as a gift (not a loan).
In Nevada, the Home Is Possible (HIP) program also offers down payment assistance — grants or forgivable loans that can be paired with conventional financing.These programs are designed to help qualified buyers reduce upfront costs and enter the market with confidence.
💡 Real Estate Queen Tip: Don’t assume you need to do this alone — there are resources built to make your first purchase possible.
4. How Much Should You Put Down? It Depends on Your Goals.
There’s no “one-size-fits-all” answer. The right down payment depends on your goals, cash flow, and timeline.
Your Goal | Suggested Down Payment | Why It Works |
Buy Sooner | 3–5% | Start building equity while prices rise. |
Lower Monthly Payment | 10–15% | Reduces PMI faster and saves on interest. |
No Mortgage Insurance | 20% | Eliminates PMI completely and locks in lower payments. |
💡 Real Estate Queen Tip: Sometimes the smartest strategy isn’t saving more — it’s moving sooner with a plan that fits your finances and lifestyle.
5. How Kimberly Smith Helps You Find the Right Balance
As a Las Vegas Realtor® with deep experience in both the housing and lending landscape, I guide buyers beyond listings and into strategy. Because homeownership isn’t just about qualifying — it’s about preparing confidently and making informed moves that fit your life.
✨ My 5 Star Approach
Quality Guidance: Clear explanation of down payment options and loan comparisons.
Understanding: Every buyer’s situation is unique — I tailor solutions to fit.
Excellence: Trusted relationships with lenders and program specialists.
Efficiency: Fast, coordinated steps from pre-approval to closing.
No Nonsense: Straightforward advice to help you make decisions with clarity and confidence.
Final Thoughts
Don’t let myths keep you renting longer than you need to. With the right strategy — and the right guidance — you can buy your home in Las Vegas with far less than 20% down.
👑 Kimberly Smith is a top Las Vegas Realtor known for her sharp market insight, strategic approach, and commitment to helping clients move smart—whether buying, selling, or just exploring what’s next. She’s not just a local expert—she’s The Real Estate Queen of Las Vegas.
📞 Connect with Kimberly:📍 Serving Greater Las Vegas | 🏡 Luxury + Residential
📲 702-706-5885
📱 Follow on Instagram: @realestatequeenoflasvegas
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