Less than most people assume. If you qualify, VA and USDA loans require zero down. FHA needs 3.5%, and many conventional loans go as low as 3%. Tennessee also offers down payment assistance for eligible buyers. The lowest-cost path depends on your situation — Sam Timlick (NMLS# 2776469) shows you the cheapest way in at no cost. Call 253-431-2630.
How much down payment do you actually need?
Here's the truth that saves people years of waiting: you almost certainly don't need 20% down. That number is the single most common myth in home buying. Depending on what you qualify for, your real minimum could be 3%, 3.5%, or nothing at all. The smartest first move isn't saving a giant pile of cash — it's finding out which low- or zero-down path actually fits you. That's a free conversation, and it often changes a buyer's whole timeline.
Zero down: VA and USDA
Two programs let qualified buyers finance the entire purchase price with nothing down. VA loans are for veterans and active-duty military — zero down, and no monthly mortgage insurance. USDA loans are for buyers in eligible areas, and a surprising amount of the Tri-Cities qualifies. If either fits you, it's usually the cheapest way into a home, and you may not need a separate assistance program at all.
Low down: FHA and conventional
If a zero-down loan isn't a fit, the down payment is still small. FHA loans require just 3.5% down with flexible credit — a strong option for first-time and credit-building buyers. Conventional loans can go as low as 3% down for eligible buyers; you'll carry private mortgage insurance under 20% equity, but unlike FHA, it falls off once you reach 20%. Which one is cheaper over time depends on your credit and how long you'll keep the loan — I'll run both so you can see the difference.
What about down payment assistance?
Tennessee does offer down payment assistance through the Tennessee Housing Development Agency (THDA), and I can originate it when it's genuinely the right fit. I'll be straight with you, though: the amounts, income limits, and terms are set by THDA and change regularly, so I won't quote a number here that might be outdated by the time you read it. On a quick call I'll check the current figures for your county and household — and just as often, I'll show you that a zero- or low-down loan gets you there with less complexity. The goal is the lowest-cost, smoothest path to closing, not the flashiest-sounding program.
Veterans: you have the most options of anyone
If you served, you're in the best position of any buyer. A VA loan already means zero down and no monthly mortgage insurance. On top of that, THDA's Homeownership for Heroes program offers a reduced interest rate to veterans and active-duty military (and other public-service heroes). As a Marine Corps veteran who has used the VA benefit myself, making sure no eligible buyer leaves these on the table is personal for me.