How Much Down Payment Do You Need to Buy a Home in Minnesota?

One of the biggest questions buyers ask is: “How much money do I need for a down payment?”

Many people believe they need 20% down. That’s not true anymore. In Minnesota, there are many ways to buy a home with less.

The 20% Myth

Putting 20% down can help. It means you borrow less and avoid private mortgage insurance (PMI). But very few first-time homebuyers have that much saved. The good news is you don’t need 20% to buy your first home.

Common Down Payment Options

• FHA Loans: As little as 3.5% down.
  

• VA Loans: 0% down for veterans and active-duty service members.
  

• USDA Loans: 0% down for homes in eligible rural areas.
  

• Conventional Loans: Some start at just 3% down.

These programs open the door for buyers across Minnesota.

How Much Should You Put Down?

The right down payment depends on your goals.

• Smaller Down Payment: Keep more cash in savings, get into a home sooner.
  

• Larger Down Payment: Lower monthly payment, less interest over time.

There is no one “best” number. It’s about what works for your budget.

Why Work With a Minnesota Mortgage Expert

At Equity Source Mortgage, we help you find the loan and down payment option that makes sense for you, while simultaneously shopping the rate for you with our decades of expertise.

The goal: make homeownership possible without draining your savings.

Final Thoughts

Don’t let the down payment myth stop you. You don’t need 20% to buy a home in Minnesota. There are many programs that can help.

Want to explore your down payment options?
Talk with Equity Source Mortgage today and see how close you are to your first, next, or forever home.