Forget the 20% Down Payment: What First-Time Buyers Need to Know
If you’re dreaming of buying your first home in Williamsburg, Virginia, you might feel a little overwhelmed — especially when it comes to saving for the down payment. One of the biggest myths out there is that you need to put down 20% to buy a home. Here’s the truth: you probably don’t, especially in a market like Williamsburg.
Do You Really Need 20% Down?
In most cases, no. Unless your specific lender or loan program requires it, you can likely buy a home with far less. Many loan programs help Williamsburg first-time buyers get in the door with a much smaller down payment.
For example:
FHA loans: as little as 3.5% down
VA loans (for veterans): 0% down
USDA loans (common in some outer parts of Greater Williamsburg and James City County): 0% down
Even conventional loans sometimes allow down payments as low as 3%. As The Mortgage Reports explains:
… many homebuyers are able to secure a home with as little as 3% or even no down payment at all … the 20 percent down rule is really a myth.
According to the National Association of Realtors (NAR), the median down payment for first-time buyers is just 9% — much lower than most people assume.
Don’t Overlook Local Down Payment Assistance
Here’s another Williamsburg homebuyer tip: almost 80% of first-time buyers qualify for some kind of down payment assistance (DPA) — but only 13% actually use it.
In Virginia, programs like Virginia Housing (VHDA) grants and local down payment assistance options in Williamsburg and James City County can help eligible buyers secure thousands of dollars toward their purchase.
As Rob Chrane, CEO of Down Payment Resource, notes:
Our data shows the average DPA benefit is roughly $17,000. That can be a nice jump-start for saving for a down payment and other costs of homeownership.
Some Williamsburg buyers even layer multiple programs, giving their savings an even bigger lift. If you’ve been wondering how to break into the competitive Williamsburg real estate market, this could be your opportunity.
The Bottom Line
Buying your first home in Williamsburg, VA doesn’t have to feel out of reach. Don’t let the 20% down myth keep you from exploring your options. With low-down-payment loans and local assistance programs, you might be closer to homeownership than you think.
If you want help navigating Williamsburg’s local market — or connecting with trusted Williamsburg lenders who specialize in first-time buyer programs — let’s chat! I’d love to help you start your homeownership journey in our beautiful historic community.
