How Much Do You Really Need for a Down Payment in 2025?
Ask most people how much you need to buy a home and they’ll say 20%. It’s one of the most persistent myths in real estate — and it keeps a lot of people from buying homes they could absolutely afford.
Here’s the truth: most buyers in Rogers and Bentonville are putting down far less than 20%. Some are putting down nothing at all. Let’s break it down.
Down Payment Requirements by Loan Type
| Loan Type | Minimum Down Payment | Best For |
|---|---|---|
| FHA | 3.5% (with 580+ credit score) | First-time buyers, rebuilding credit |
| Conventional | 3–5% | Buyers with strong credit (620+) |
| VA | 0% | Veterans, active duty, surviving spouses |
| USDA | 0% | Buyers in eligible rural/suburban areas |
| Jumbo | 10–20% | Loans above $806,500 |
So Where Did the 20% Rule Come From?
The 20% figure comes from private mortgage insurance (PMI). On a conventional loan, if you put down less than 20%, your lender will require PMI — a monthly insurance premium that protects the lender if you default. PMI typically runs 0.5–1.5% of your loan amount annually.
So putting 20% down isn’t a requirement — it’s a threshold that lets you avoid PMI. And on an FHA loan, you pay mortgage insurance regardless of your down payment (though it can be removed after 11 years if you put down 10% or more).
USDA Loans: The Best-Kept Secret in NWA
One thing that surprises a lot of buyers in Northwest Arkansas: USDA loans cover more of this area than most people expect. USDA eligibility is based on geography and income, and many suburbs in and around Rogers, Springdale, and Fayetteville qualify. If you’re exploring homes in these areas, it’s worth a quick check — zero down payment is a significant benefit.
Down Payment Assistance Programs in Arkansas
Arkansas has several down payment assistance programs available to qualifying buyers, including programs through the Arkansas Development Finance Authority (ADFA). These programs can provide grants or low-interest second loans to cover part of your down payment and closing costs — money that, in some cases, doesn’t need to be repaid.
Eligibility depends on income, purchase price, and whether you’re a first-time buyer. I help clients explore and stack these programs regularly — it’s one of my favorite parts of the job.
What Should You Actually Put Down?
There’s no universal right answer — it depends on your financial situation, which loan you qualify for, and your goals. Here’s how I think through it with clients:
- If you have VA eligibility, use it. Zero down with no PMI is an exceptional benefit.
- If you’re an FHA buyer with limited savings, 3.5% down gets you in the door. You can always refinance later when you have more equity.
- If you have strong credit and could do conventional, putting 10–15% down can sometimes get you a better rate than the 3–5% minimum — while keeping cash in reserve for repairs or emergencies.
- Never drain your emergency fund for a larger down payment. A home repair on a house you just bought with zero cash reserves is a stressful situation to be in.
Want to run the numbers for your specific situation? Reach out to Kiley for a free, no-obligation conversation. We’ll figure out the right approach for where you are right now.
Rates, limits, and program details subject to change. Contact Kiley for current information. NMLS# 1453865 | Benchmark Mortgage | Licensed in AR, MO, KS & OK.
