Key Takeaway: You may not need 20% down-or the perfect mortgage rate – to start exploring home ownership. 

Depending on your financial situation and eligibility, some borrowers may qualify for mortgage programs with down payments as low as 3%, while eligible Veterans and service members may have access to VA-backed financing with no downpayment.

The rate you see in the headline also isn’t necessarily the rate available to you. Understanding your loan options, monthly payment and cash needed at closing can give you a clearer picture of what buying a home could look like today.

Sources: Fannie Mae, Freddie Mac and U.S. Department of Veteran Affairs

Homeownership May Be Closer Than You Think

Buying a home has never been a one-size-fits-all decision. Right now, it may feel especially complicated. You might be watching mortgage rates move, wondering what home prices will do or questioning how much you really need for a down payment. And if you’ve spent any time with an online mortgage calculator, you already know how quickly changing one number can change the entire picture. 

But a calculator can only calculate what you put into it. 

It can’t tell you about a loan program you didn’t know existed, or whether you served in the military, own a business, receive income from several sources, have family willing to contribute gift funds or have assets you would rather keep invested in. It can’t look at your finances and ask if there is another way to structure your mortgage. 

A knowledgeable Mortgage Advisor can. And in a market where rates and affordability can quickly change, having a lending partner is an essential place to start the homebuying process.

Mortgage Rates Matter, but Your Rate Isn’t the Whole Story

There’s more to today’s rate than most people are aware of. 

As of September 24, 2026, Freddie Mac reported the average 30-year fixed mortgage rate at 7.03%, up from 6.95% the previous week. The average was 6.71% on September 3 (Source: Freddie Mac Primary Mortgage Market Survey, September 24, 2026)

Even a relatively small difference in an interest rate can affect a borrower’s monthly payment and purchasing power. What is not apparent is the rate available to you. So seeing 7.03% in a headline doesn’t tell you what your mortgage would look like. 

This is where a Mortgage Advisor is incredibly helpful. Mortgage rates can vary based on factors including the loan type, credit profile, down payment and other details of the transaction. Rather than starting and ending with a rate, an experienced advisor can look at the variables that affect your financing options: how much you put down, the type of loan you use, your credit profile, your assets, the property, your desired monthly payment and the timing of your purchase. 

The question becomes less about predicting the market and more about understanding what financing options may be available based on your financial picture today.

Do You Really Need 20% Down to Buy a Home?

Start by challenging the assumptions. 

One of the most common assumptions is the idea that buying a home requires 20% down. It doesn’t always. Depending on the eligibility and financial circumstances, qualified borrowers may have access to conventional mortgages requiring considerably less. Fannie Mae’s HomeReady® and Freddie Mac’s Home Possible® programs both allow down payments as low as 3%. Both also permit eligible borrowers to use certain gifts and grants toward their down payment and closing costs (Source: Fannie Mae HomeReady Mortgage)

Down payment assistance programs are another possibility for eligible buyers. Veterans, active-duty service members and certain surviving spouses may qualify for VA-backed financing. The Department of Veteran Affairs says 90% of VA-backed loans are made with no down payment, and VA-backed purchase loans do not require private mortgage insurance.

None of this means every borrower qualifies for every program. It means you might want to know what you qualify for before spending another year saving toward a number you assumed you needed. 

Your financial life belongs in the mortgage discussion

The traditional picture of a homebuyer with a salary, a savings account, and 20% down represents only one type of borrower. 

Maybe you own a business and your income looks different on paper. Perhaps much of your wealth is invested and you don’t want to sell assets to make a larger down payment. You may own another property with substantial equity. You could be buying your first home with assistance from family. Or you might have a good income but a less-than-perfect credit score. 

This is what your Mortgage Advisor needs to know so they can start asking the right questions. Choosing a mortgage isn’t only about qualifying for the largest loan available; it’s about knowing how financing a home will fit in with the rest of  your financial life. 

For instance, would putting less down preserve cash you want available elsewhere? Could a different loan program change your monthly payment or amount needed at closing? Or maybe there is a benefit available to you that you knew nothing about that could change your options months from now. 

Should You Wait for Mortgage Rates to fall?

If you’re waiting for the market, know what you’re waiting for. 

It’s normal to wonder if rates will come down. No one knows with certainty when they will, by how much, or if home prices will be doing the same. Recent rate movement demonstrates how difficult it is to identify the perfect moment. There is little difference between waiting because buying doesn’t work for you and waiting because you assume it doesn’t. 

When you speak with an advisor, you can immediately determine the monthly payment you’re comfortable with, how much cash you need at closing, and other details, like programs for which you can qualify. If the numbers don’t work today, you will be aware of what needs to change before you revisit them. Now you have something more useful than a prediction. You have a plan!

Why Mortgage Pre-Approval Matters Before You Find a Home

Know before you find the house. 

There is a moment in homebuying when everything can suddenly move very fast. You find the house. You want to make an offer. You need to know what you can afford, how you will finance it and what happens from there. 

That is not an ideal moment to start learning how mortgages work. 

The Consumer Financial Protection Bureau recommends exploring mortgage choices before finding a home, noting that once an offer is accepted, buyers may only have a few days to line up the financing. Starting earlier gives you time to understand your options, gather documentation, and get preapproved before a house is on the line (Source: Consumer Financial Protection Bureau)

Preapproval can make the search easier. It can help you and your real estate agent understand your price range and signals to sellers that you are prepared to buy.

One important distinction: A reapproval is not a guaranteed loan offer. It is a lender’s tentative indication that it is willing to lend up to a certain amount based on assumptions and information provided during the process.

But there is another reason to bring a lender into the process earlier: you have someone to call when the questions begin. 

What happens if rates move before you make an offer? How does a particular property change the numbers? What will you need for closing? What does a line on the Loan Estimate mean? If something changes in your finances, does it change your loan? 

Buying a home can be stressful, and having experienced professionals involved can make a complicated process easier to navigate.

The relationship is crucial in a changing rate environment. You don’t need to become a mortgage expert every time the market moves. You need access to someone who already is one. 

At Generations Home Loans, that is the partnership we want you to have from the beginning. A Mortgage Advisor who knows your financial profile, knows the lending landscape, and is there when hypothetical questions become real ones. So, when you find the home you want, you aren’t starting with, “Can I do this?” You already know how you can.

Questions to Ask a Mortgage Advisor Before You Buy

Before you start looking at homes, it can help to understand the questions that will shape your financing options:

• How much could I comfortably spend each month?
• How much cash might I need at closing?
• Do I need 20% down for the loan options available to me?
• Could I qualify for a low-down-payment conventional loan?
• Are there down payment assistance programs I may qualify for?
• How would different loan programs affect my monthly payment/
• What documents should I prepare for preapproval
• How might changes in my income, assets or credit affect my loan?
• What happens if mortgage rates change while I’m shopping?

Start the conversation with a GHL Mortgage Advisor.