You Do Not Need 20 Percent Down to Buy a Home in Maryland
You Do Not Need 20 Percent Down to Buy a Home in Maryland
Thinking about buying a home in Anne Arundel County — maybe in Annapolis, Crofton, Odenton, Severna Park, Bowie, or nearby? You’ve likely heard someone say you have to save 20 percent down before you can buy.
That used to be common advice, but today, it is not a requirement for many buyers. Let’s break down what’s really possible.
Down Payment Isn’t One Size Fits All
The minimum down payment you need depends entirely on the type of mortgage you choose:
• VA loans (for eligible veterans and service members) can offer 0 percent down options. https://www.newamericanfunding.com/learning-center/guides/maryland-first-time-homebuyer-guide/?utm_source=chatgpt.com
• USDA loans also may require 0 percent down for eligible buyers. https://www.newamericanfunding.com/learning-center/guides/maryland-first-time-homebuyer-guide/?utm_source=chatgpt.com
• Conventional loans may let qualified buyers put as little as 3 percent down. https://www.newamericanfunding.com/learning-center/guides/maryland-first-time-homebuyer-guide/?utm_source=chatgpt.com
• FHA loans (a government-backed mortgage) typically require only 3.5 percent down.
In other words, you don’t have to save up 20 percent just to get into the market. Your actual requirement depends on your loan type, credit, income, and lender.
There Are Programs That Help With Down Payment Too
Maryland has programs designed to make buying a home more attainable:
• The Maryland Mortgage Program (MMP) offers mortgage loans with down payment assistance options to qualified buyers across the state.
• Anne Arundel County’s Mortgage Assistance Program (MAP) provides financial help to first-time buyers who complete homeownership education, often covering down payment and closing costs.
• State and local assistance may include grants or deferred loans to make buying more affordable — even if you haven’t saved 20 percent.
These tools can significantly reduce the amount of cash you need at closing — an opportunity many homebuyers don’t even know exists.
Why This Matters Right Now
Saving 20 percent of a home’s purchase price can take years. In a market where homes in our region continue to appreciate, waiting might mean higher prices later and higher interest rates on top of that.
Being able to buy sooner with a low down payment option or assistance program can help you:
• Start building equity sooner
• Lock in a home in your desired neighborhood
• Avoid rising costs in a competitive market
Next Steps for You
If you’ve been putting homeownership on hold because you thought you needed 20 percent down, you might be closer than you think to qualifying today.
✨ Let’s take a look at your numbers.
A quick conversation with a lender and a personalized plan can open doors you didn’t even know were available.
👉 Want to see what you qualify for? Let’s talk.
