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YOUR MORTGAGE, EXPLAINED

You may not need twenty percent down, but ask about all the cash

This Short challenges a common assumption: every homebuyer must save a twenty percent down payment. Smaller down payment options exist, but the amount due at closing includes more than the down payment alone.

By Eric Hamilton · Published October 6, 2026

Originally uploaded June 9, 2025 · 0:34 · 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 programs fit

Some conventional programs permit three percent down for eligible buyers; other loans have different minimums. Eligible VA borrowers may purchase without a down payment when program and lender requirements are met. Availability depends on the borrower, property, price, and loan structure.

Review assistance carefully

Down payment assistance may help a qualifying buyer, but it is not automatically free money. Ask about income or location restrictions, whether the assistance is a grant or another loan, and whether repayment can be triggered by selling or refinancing.

Request the total out of pocket estimate

Ask for the down payment, closing costs, prepaid items, credits, and estimated cash to close. Keep moving costs and a household reserve separate. Compare how a smaller down payment changes the loan balance, payment, and any mortgage insurance.

Does zero down mean I need no money to buy?

No. Closing costs and other expenses may still apply, even when the program does not require a down payment.

Sources and scope

The June 2025 video gives examples of possible financing structures. A current personalized estimate is needed to determine your options and cash requirement.

  1. CFPB: Determine your down payment Accessed October 6, 2026
  2. CFPB: Special loan programs Accessed October 6, 2026
  3. VA: Purchase loan benefits and eligibility 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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