Waiting to Save 20%? Read This First

Sep 1

If you've been telling yourself, “I'll buy a house once I have 20% saved,” we need to talk. Because there is a pretty good chance you're putting off homeownership because you've been working toward a number you may not actually need.

Twenty percent down has become one of those real estate “rules” that everyone seems to know, even if they aren't quite sure where it came from. And while putting 20% down can certainly have benefits, it is not a requirement for buying a home.

There are plenty of buyers in Kitsap County who could potentially buy a home with significantly less down, depending on their loan program, finances, and circumstances. For first-time homebuyers in Bremerton, Poulsbo, Silverdale, Port Orchard, and throughout Kitsap County, understanding your options is often much more useful than simply waiting until your savings account hits an arbitrary number.

For example, some first-time homebuyer programs offer down payment assistance or other forms of financial support for eligible buyers. The exact programs and requirements change, but they can make a meaningful difference for someone who has steady income but hasn't been able to save a massive down payment.

Then there are VA loans, which can be especially important here in Kitsap County because of our strong military community. Qualified veterans and active-duty service members may be eligible for VA financing with no down payment. That doesn't mean buying a home comes with no upfront costs, but it does mean that having 20% saved isn't necessarily the barrier many military buyers assume it is.

New construction is another area worth watching. Builders sometimes offer incentives such as closing cost assistance, temporary interest-rate reductions, or other financing incentives. These offers vary by community and builder, but they can change the math considerably for buyers who are comparing the cost of purchasing a new home versus waiting and saving for a larger down payment.

There are also conventional and other loan programs that allow for lower down payments. The right option depends on your financial situation, credit profile, income, debt, and the type of property you're purchasing. That's why I always encourage people to talk with a qualified lender before deciding that they aren't ready.

And here's something else I wish more people knew: your down payment isn't the only number that matters.

When you're figuring out whether you can afford to buy a home, you also need to consider your monthly payment, property taxes, homeowners insurance, potential HOA dues, maintenance, closing costs, and how much cash you want to have left after closing.

A buyer who technically can put 20% down isn't necessarily better off doing so if it completely drains their savings.

I'd much rather see someone understand their full financial picture and make an informed decision than spend years trying to reach 20% simply because they heard that's what you're “supposed” to do.

This is especially important in a market like Kitsap County. If you're waiting until you have the perfect amount saved, the perfect interest rate, and the perfect home all at the same time, you could be waiting for a very long time.

That doesn't mean everyone should rush out and buy a house. Homeownership is a big financial commitment, and being ready matters.

It does mean you shouldn't count yourself out before you've actually looked at the numbers.

Maybe you're closer than you think. Maybe a different loan program makes more sense. Maybe a down payment assistance program could help. Maybe a VA loan is an option. Maybe a new construction incentive changes the equation.

Or maybe you aren't quite ready yet, but now you know exactly what you need to work toward!!

That's a much better place to be than simply saying, “I can't buy until I have 20%.”

The internet has made homeownership sound impossible sometimes. I get it. Between home prices, interest rates, headlines about the housing market, and the sheer amount of conflicting advice online, it's easy to assume you need hundreds of thousands of dollars sitting in a savings account before you can even start the conversation.

You don't. You need information. You need a realistic understanding of your budget. And you need to know what options are actually available to you.

Let's figure out what buying could actually look like for you, what you may qualify for, and what you would need to do to get there. No pressure and no awkward sales pitch. Just real information so you can make a decision based on your situation instead of something you heard on the internet.

Because your future home might be a lot closer than you think!!

Your Kitsap Real Estate Guide,
Rachel Harris, REALTOR®

Rachel Harris

Waiting to Save 20%? Read This First

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