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The cash needed to buy a home is more than a down-payment percentage

Eric challenges the belief that every buyer needs 20% down. Smaller down-payment options can be available, but their eligibility and total costs must be evaluated for the particular borrower.

By Eric Hamilton · Published October 6, 2026

Originally uploaded August 17, 2025 · 0:26 · Watch on YouTube

Written companion added October 6, 2026. Adapted from Eric’s video captions with source checks; not a word for word transcript. The recording retains its original date.

Ask which options actually fit

Some conventional programs allow 3% or 5% down. Eligible VA borrowers may obtain no-down-payment financing, subject to program and lender requirements, including the property value. These choices are not interchangeable, and a smaller down payment can change mortgage insurance and other loan costs.

Request the full cash figure

Down payment is only one part of the amount needed at closing. Include loan costs, prepaid expenses and other required funds, then preserve cash for moving and surprises. If assistance is available, ask whether it is a grant or a repayable obligation and what conditions apply.

Does no down payment mean no money needed?

No. Closing costs and reserves can still matter. Ask for a complete estimate and any applicable VA funding fee or exemption.

Sources and scope

Published August 17, 2025. The clip’s suggestion that down-payment requirements can usually be worked around is not an approval promise.

  1. CFPB: Determine your down payment Accessed October 6, 2026
  2. VA: Purchase loan eligibility and costs Accessed October 6, 2026

General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.

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