CHARLOTTE, N.C., Sept. 06, 2025 (GLOBE NEWSWIRE) — Do you really need 20% down to buy a home? Many buyers in Charlotte still believe they must save that much before entering the market, but today’s loan programs and assistance options prove otherwise. In an article featured in HelloNation, Carolina Buyer’s Agent founder Julie P. Tuggle explains why buyers often succeed with as little as 3 to 5% down, and how available programs make homeownership more accessible than many realize.
The 20% standard originated decades ago when lenders required large down payments to reduce risk. While putting more money down can help buyers avoid private mortgage insurance (PMI), it is no longer the only path to ownership. Today, FHA, VA, USDA, and conventional loan programs provide buyers with flexible options. For many, entering the market earlier with a smaller down payment is more beneficial than waiting years to save the traditional amount.
One of the biggest advantages of buying with less down is avoiding years of delay. Charlotte’s housing market has shown steady growth, and buyers who wait may find that homes become less affordable over time. By using programs that allow for 3 to 5% down, buyers can start building equity sooner, benefiting from both appreciation and loan repayment over time.
There are trade-offs, as smaller down payments usually require PMI. PMI adds to the monthly mortgage cost, but as Tuggle explains, it can also be viewed as a tool. For a relatively small monthly fee, PMI gives buyers the ability to enter the market earlier, start building wealth, and stop paying rent. Once equity reaches 20%, PMI can often be removed, leaving the homeowner with an appreciated property.
Loan options in Charlotte vary depending on the buyer’s situation. FHA loans are common among first-time buyers because of their lower down payment requirements and flexible credit standards. Conventional loans may also allow smaller down payments, though the terms for insurance may differ. VA loans provide an even greater advantage for eligible veterans and military families, with no down payment required and no PMI. USDA loans serve rural buyers, offering zero down payment options in qualifying areas near Charlotte.
Down payment assistance programs add another layer of opportunity. In North Carolina, the NC Housing Finance Agency offers forgivable loans and grants to first-time buyers and qualifying families, covering part of the down payment or closing costs. Similar programs exist through Mecklenburg County and the City of Charlotte, giving households with steady income but limited savings the chance to bridge the gap. These options can be life-changing for buyers who are ready to move forward but need help with upfront costs.
Charlotte’s real estate market adds urgency to this decision. With steady population growth and strong demand, homes across the metro area continue to hold and build value. For many buyers, the choice is clear: it is better to purchase sooner with a smaller down payment than to wait for years while prices rise.
The full article, Myth vs. Fact — You Don’t Need 20% Down, features Julie P. Tuggle of Carolina Buyer’s Agent sharing insights on how today’s mortgage programs and assistance options give Charlotte buyers more flexibility than ever before.
About HelloNation
HelloNation is a premier media platform that connects readers with trusted professionals and businesses across various industries. Through its innovative “edvertising” approach that blends educational content and storytelling, HelloNation delivers expert-driven articles that inform, inspire, and empower. Covering topics from home improvement and health to business strategy and lifestyle, HelloNation highlights leaders making a meaningful impact in their communities.
Patrick McCabe
[email protected]
www.hellonation.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aa2f0156-2c2a-49f8-962a-4efd24349aaa
