How Much Money Do You Actually Need to Buy a Home in 2025? (No B.S. Guide)
Friday, March 14, 2025
🏡 How Much Do You REALLY Need to Buy a Home in 2025? (No B.S. Edition)
Look, if you’re still out here thinking you need 20% down to buy a house, I’ve got good news: You don’t.
In fact, depending on the loan, you might need zero down, 1% down, or no income docs at all—yes, even if your tax returns look like a crime scene.
Let’s break this down without the fluff so you can stop guessing and start owning.
🏡 Zero & Low Down Payment Loans🚀 VA Loans (0% Down)
Who it’s for: Active-duty military, veterans, and eligible spouses.
- No down payment. No PMI. Lower rates. If you qualify and aren’t using this, we need to have a talk.
- Service requirement: 90 days of active duty gets you in.
- Bonus: Your Basic Allowance for Housing (BAH) counts as income.
➡ If you’re eligible, VA wins. Period.
🌱 USDA Loans (0% Down, But Tricky)
Who it’s for: Buyers in rural areas (which might include some suburbs).
- No down payment required.
- Lower mortgage insurance than FHA.
- The catch? It’s got income limits and location restrictions.
➡ If you’re open to a non-city zip code and meet the income limits, it’s a solid play.
💰 1% Down Payment Loans (Yes, Really.)
Who it’s for: First-time and repeat buyers with limited savings.
- You put down 1%, lender gives you another 2%. Boom—3% equity on day one.
- Lower upfront costs, faster homeownership.
- Income limits may apply, but credit flexibility makes it worth checking.
➡ You have $4,000 in your savings? You might already be ready to buy.
🏛 Bond Loans & Government Assistance (0% or Low Down)
Who it’s for: First-time and lower-income buyers.
- Down payment assistance, grants, and forgivable loans (varies by state).
- Sometimes covers closing costs, too.
- You’ll need to meet income/location guidelines.
➡ If cash is your biggest hurdle, check your state’s programs.
📉 Conventional Loans (3%-5% Down, No Drama)
Who it’s for: First-time and repeat buyers.
- 3% down for first-time buyers (loan limit up to $865,000).
- 5% down for repeat buyers.
- No PMI with 20% down (but it drops off when you hit 20% equity).
- Credit score of 620+ gets you in.
➡ If you’ve got good credit, this can save you big on mortgage insurance.
🛠 FHA Loans (3.5% Down, Built for Flexibility)
Who it’s for: Buyers with lower credit scores or higher debt-to-income ratios.
- 3.5% down, even if your credit isn’t perfect.
- More forgiving on debt-to-income.
- Great for buying 2-unit properties (live in one, rent the other).
- Loan limits vary by county.
➡ If you’ve got a 580+ credit score and a good job, this could be your best bet.
💼 Non-Traditional & Investor Loans (The Creative Playbook)📊 DSCR Loans (For Investors, No Income Verification)
Who it’s for: Real estate investors who don’t want to show personal income.
- Approval is based on the property’s rental income, NOT your W-2s.
- No tax returns, no pay stubs, no explaining your DoorDash side hustle.
- If the rent covers the mortgage, you might qualify.
➡ If you’re an investor, stop jumping through traditional lending hoops.
💵 Bank Statement Loans (For Self-Employed Buyers)
Who it’s for: Entrepreneurs, freelancers, and business owners.
- Uses bank deposits instead of tax returns.
- Flexible debt-to-income (DTI) ratios.
- If your tax write-offs make your “income” look terrible, this is your fix.
➡ If you run your own business, don’t let your tax strategy stop you from buying a house.
🏡 Community Mortgage Loans (No Income Docs, No DTI Calculation)
Who it’s for: Self-employed, non-traditional borrowers, and underbanked buyers.
- No income verification. No debt-to-income ratio.
- Flexible credit underwriting (they look at the big picture, not just FICO scores).
- 30-year fixed terms, no prepayment penalties.
- Minimum credit score of 680 required.
- Max Loan-to-Value (LTV): 75% for purchases.
➡ If your paperwork doesn’t fit the usual lender box, this program might.
💰 Jumbo Loans (For High-Priced Homes, Big Loans Only)
Who it’s for: Buyers needing loans above conventional limits.
- Loan amounts start above $865,000.
- Higher credit and reserve requirements.
- 10%-20% down typically needed.
➡ Buying a high-end home? Expect more hoops to jump through.
💸 Closing Costs: Can You Avoid Them?
Most buyers freak out about closing costs (2%-5% of the purchase price). Here’s the real talk:
- You don’t always have to pay them.
- Many sellers will cover closing costs if you negotiate it right.
- In some markets, it’s practically standard.
➡ Talk to your lender BEFORE assuming you need extra cash.
⏳ The Cost of Waiting: Let’s Talk Regret
I’ve seen buyers say, “I’ll wait until I have 20% saved.” Here’s what happens:
📈 In 2024, home prices still went up 5.8%.
That means if you were eyeing a $400,000 house, it’s now $420,000. Next year? Probably higher.
💡 Translation: The longer you wait, the more expensive it gets.
➡ If you’re financially stable and renting, it’s time to make a move.
📞 Ready to Talk? Let’s Get You a Game Plan.
You don’t need 20% down. You don’t need perfect credit. But you do need a strategy.
📅 Book a free call
📩 Or reply to this email with your questions!
To your success,
Keith Goeringer
Keith Go Lending
📞 (615) 955-0461
