---
title: "Down Payment Affordability: Tips for Millennial Homebuyers"
description: Don't let common misconceptions about down payments prevent you from owning a home. Orson Woodall of Valdosta, GA bankruptcy firm Woodall & Woodall shares some helpful tips.
---

[Georgia Bankruptcy Blog ](https://www.orsonwoodall.com/blog)

# [Down Payment Affordability: Tips for Millennial Homebuyers](https://www.orsonwoodall.com/blog/down-payment-affordability-tips-for-millennial-homebuyers)

 Written by [Orson Woodall](https://www.orsonwoodall.com/blog/author/orson-woodall) | Nov 25, 2019

***Don't let common misconceptions about down payments prevent you from owning a home.***

As more millennials are transitioning from renters to homeowners, many have concerns about the money required to take the next step. Affording the down payment on a home is[ the top concern](https://www.redfin.com/blog/redfin-survey-36-of-millennial-homebuyers-took-a-second-job-to-save-for-down-payment-10-sold-cryptocurrencyhttps:/www.redfin.com/blog/redfin-survey-36-of-millennial-homebuyers-took-a-second-job-to-save-for-down-payment-10-sold-cryptocurrency) for 50% of millennials breaking into the housing market, and the common misconception of the 20% down rule can be daunting.

Budgeting for a 20% down payment can be an overwhelming task for people planning to buy a home. However, there are many loan programs designed to help potential homebuyers save on their down payment.

#### Down Payment Assistance

Provided by federal, state, county, city and non-profit agencies, down payment assistance programs help potential homebuyers by lending enough money to cover some or all of the down payment.

There are three different options when choosing a down payment assistance program:

- **Apply for a grant.** Provided by foundations or local governments, a grant doesn’t require reimbursement.
- **Take out a loan. **Generally, through monthly payments, the loan will need to be paid back to the lender. These loans are occasionally interest-free.
- **Use tax credits. **This is an amount of money subtracted from taxes owed so the potential buyer can put more money toward a down payment.

There are also a variety of other programs that support different groups, such as low-income individuals or public service professionals. Not all potential homebuyers will be eligible for these options, but they are worth exploring to see if you qualify.

#### **Loan Options**

There are many different mortgage loan programs to help cover the down payment of a home for any financial situation. It’s important to consider all options when shopping for a mortgage:

- **Conventional Home Loan:** With down payments as low as three percent, conventional home loans generally offer more flexibility when it comes to loan terms.
- **FHA Loan:** Designed for individuals with a low-to-moderate income level and credit score, FHA loans offer low down payments, allowing the borrower to buy a home with a minimum of 3.5 percent down payment.
- **USDA Loan:** A mortgage loan program offered to potential homebuyers in rural areas. With no down payment requirement, borrowers can choose to make a zero down payment.
- **VA Loan:** Home loans only eligible to Veterans and current service members, allowing borrowers to buy a home with little or no down payment.

Talk with a loan officer when considering different mortgage loan options to discuss the program requirements.

#### Owning A Home Is Not Out of Reach

Just because you don't have 20% down in cash sitting in your bank account, doesn't mean you can't own a home. Use these tips to decide how to make home ownership a reality.

[View full post](https://www.orsonwoodall.com/blog/down-payment-affordability-tips-for-millennial-homebuyers)

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