For many homebuyers in Greenwood, SC and beyond, the idea of saving for a 20% down payment can feel overwhelming. If you’ve ever wondered, “Can I get a mortgage with less than 20% down?” the answer is yes. In fact, most buyers today purchase their homes without putting 20% down. At Morton’s Realty, we know how important it is to understand your financing options so you can move forward with confidence.

This guide breaks down what it means to buy a home with less than 20% down, the pros and cons, and the programs available to make homeownership more affordable.

Why 20% Down Became the “Standard”

Traditionally, lenders preferred buyers to put 20% down because it lowered their risk. A larger down payment:

  • Reduces the loan amount

  • Demonstrates the buyer’s financial stability

  • Eliminates the need for mortgage insurance

But as housing costs rose and first-time buyers entered the market, many lenders created programs that allow smaller down payments—making homeownership more attainable for everyday families in Greenwood, SC.

Yes, You Can Buy With Less Than 20% Down

Here’s the truth: very few buyers actually put 20% down. According to national studies, the average down payment for first-time homebuyers is closer to 6–7%, while repeat buyers average around 15–16%.

This means you absolutely don’t need to wait until you have 20% saved to buy a home in Greenwood. With the right loan program, you may be able to put down as little as 3%, 3.5%, or even 0%.

Popular Loan Programs That Require Less Than 20% Down

1. FHA Loans

  • Minimum down payment: 3.5%

  • Ideal for first-time buyers or those with lower credit scores

  • Backed by the Federal Housing Administration

  • Requires mortgage insurance (MIP)

2. VA Loans

  • Minimum down payment: 0%

  • Available to eligible veterans, active-duty service members, and certain spouses

  • No mortgage insurance required

  • Competitive interest rates

3. USDA Loans

  • Minimum down payment: 0%

  • For buyers in designated rural and suburban areas—including parts of Greenwood County

  • Backed by the U.S. Department of Agriculture

  • Great option for buyers who meet income requirements

4. Conventional Loans

  • Minimum down payment: 3–5%

  • Offered by many private lenders

  • Requires Private Mortgage Insurance (PMI) if less than 20% is put down

  • PMI can often be canceled once you reach 20% equity

The Role of Mortgage Insurance

When you buy with less than 20% down, most lenders will require mortgage insurance (PMI or MIP). This protects the lender in case of default, but it does increase your monthly payment.

  • PMI (Private Mortgage Insurance): Common for conventional loans

  • MIP (Mortgage Insurance Premium): Required for FHA loans

The good news? PMI isn’t forever. Once you’ve built 20% equity in your home, you can usually request to have it removed—reducing your monthly costs.

Benefits of Buying With Less Than 20% Down

  1. Enter the Market Sooner
    Instead of waiting years to save a large down payment, you can become a homeowner now and start building equity.

  2. Keep More Cash on Hand
    Buying with less down leaves you more money for moving costs, renovations, or an emergency fund.

  3. Take Advantage of Today’s Rates
    If interest rates are favorable, waiting to save a larger down payment could actually cost you more long term.

Things to Consider

While buying with less than 20% down is possible, it’s important to weigh the trade-offs:

  • Higher Monthly Payments: Because of mortgage insurance and a larger loan balance.

  • Stricter Credit Requirements: Some low-down-payment programs require stronger credit scores.

  • Equity Builds Slower: With less money down, it may take longer to build significant equity in your home.

That’s why working with a local real estate team like Morton’s Realty is so important—we’ll help you evaluate your personal situation and connect you with trusted lenders who specialize in low-down-payment programs.

Down Payment Assistance in Greenwood, SC

South Carolina offers several down payment assistance programs for qualified buyers, especially first-time homeowners. These may include grants, forgivable loans, or closing cost assistance. Morton’s Realty works closely with lenders in Greenwood to help you explore these opportunities and stretch your budget further.

Tips for Greenwood Buyers Planning a Lower Down Payment

  • ✅ Get Pre-Approved Early: Know what you can afford before shopping.

  • ✅ Work with a Local Agent: We’ll guide you toward lenders who offer the best programs for your needs.

  • ✅ Budget for Closing Costs: These are often 2–5% of the purchase price in addition to your down payment.

  • ✅ Focus on Credit Health: Stronger credit may unlock better terms, even with less down.

  • ✅ Think Long Term: Consider how your monthly payments fit into your lifestyle and financial goals.

Should You Wait Until You Have 20%?

Not necessarily. For many buyers in Greenwood, waiting years to save 20% may mean missing out on the perfect home, rising prices, or higher interest rates. While 20% has its advantages, buying sooner with less down often makes more sense—especially if you’re financially stable and ready to commit to homeownership.

Morton’s Realty: Helping Greenwood Buyers Every Step of the Way

At Morton’s Realty, we understand that every buyer’s situation is unique. Whether you’re putting down 20% or just 3%, our team is here to:

  • Explain your financing options clearly

  • Connect you with local lenders who offer low-down-payment programs

  • Help you find the right home that fits your budget and goals

  • Guide you through negotiations and closing with confidence

Final Thoughts

So, can you get a mortgage with less than 20% down? Absolutely. From FHA and VA loans to USDA and conventional options, there are many pathways to homeownership in Greenwood, SC without needing a massive down payment.

If you’re ready to explore your options, Morton’s Realty is here to help. Let’s turn your dream of homeownership into reality—without waiting years to save 20%.

📞 Call Morton’s Realty today at 864-229-0422 or visit www.mortonsrealty.com to start your homebuying journey in Greenwood, SC.