Do I need 20% down to buy in Southern Maryland?

Not necessarily. Many buyers use less down and still make competitive offers with the right loan structure and a strong plan.

How much house can I afford if I’m approved for more?

Affordability should be based on payment comfort, reserves, and lifestyle—not the maximum approval. We choose the payment first, then set the price range.

What costs do buyers forget to plan for?

Taxes and insurance changes, HOA/condo fees, moving costs, repairs, and the first-year maintenance buffer.

Can you help me set a price range quickly?

Yes. With a few basics (income, debts, down payment, and target comfort), we can map a safe range and next steps fast.

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Do I Need 20% Down to Buy a Home?

You’ve probably heard “you need 20% down.” In reality, many buyers purchase with far less — the key is understanding the trade-offs and choosing a safe structure.

Common down payment options

3%–5% down: common on conventional for qualified buyers
3.5% down: FHA
0% down: VA (eligible veterans) and USDA (eligible rural areas)
10%–20%+ down: can reduce payment and improve pricing

What you trade when you put less down

Lower down payment can mean:

But it can also preserve cash for reserves, repairs, and life — which is often the smarter play.

Example scenario

Example: A buyer with 10% down may choose to keep 3–6 months of reserves instead of stretching to 20% and ending up “house rich, cash poor.”

Guidance

The best down payment is the one that:

Quick explanation from Steve

Video coming soon. (No empty player box—this placeholder will be replaced once recorded.)

Next step

If you want a clear plan (not generic advice), start with the Homebuyer Planning Survey so I can tailor guidance to your goals and timeline.

Start the Homebuyer Planning Survey

If a question comes up while you’re reading, ask Steve247 using the chat in the corner of the page.

FAQ

Is mortgage insurance always bad?

Not always. MI can be a reasonable tool to buy sooner, preserve cash, or compete — especially if you have a plan to remove it later.

Can I use gift funds for the down payment?

Often yes, depending on the loan type and documentation. We’ll confirm what’s allowed for your specific program.

What’s better: bigger down payment or better reserves?

Both matter. In many cases, strong reserves reduce risk more than squeezing every dollar into down payment.

About Steve Combs

Steve Combs is a mortgage strategist focused on helping buyers and homeowners make clear, confident mortgage decisions across Southern Maryland, Washington DC, Northern Virginia, and the Annapolis / Anne Arundel area. He is registered to lend in 46 states and the District of Columbia and has been quoted in The Washington Post. The goal of this site is simple: make mortgage decisions feel clear—not overwhelming.