by Don Conwell
Senior Mortgage Advisor, First United Mortgage

One of the first questions I hear from first-time buyers is some version of, "How much do I need to have saved for the down payment?" The assumption is often 20%.

It almost never is.

Twenty percent was never a requirement. It's simply the point where mortgage insurance goes away. Most buyers put down considerably less, and many are surprised by how much less.

Here's what the major programs require.

Conventional: 3% to 5%

Fannie Mae and Freddie Mac allow qualified first-time buyers to put down 3% through programs like HomeReady and Home Possible. On a $250,000 home, that's $7,500. Standard conventional financing starts at 5%. You'll carry private mortgage insurance below 20% equity, but that insurance can come off later once you've built enough equity — which is worth weighing against the alternatives.

FHA: 3.5%

FHA requires 3.5% down with a credit score of 580 or higher — $8,750 on that same $250,000 home. Between 500 and 579, the requirement rises to 10%. FHA tends to be the more forgiving path for lower scores or a thinner credit history.

VA: 0%

Eligible veterans, active-duty service members, Guard and Reserve members, and many surviving spouses can finance 100% with no down payment and no monthly mortgage insurance. If you've served, this benefit is worth understanding fully before you consider anything else.

USDA: 0%

USDA offers 100% financing on homes in eligible rural and semi-rural areas. This covers more ground around Oklahoma's metros than most buyers expect. Household income limits apply.

Section 184: 2.25%

HUD's Section 184 Indian Home Loan Guarantee Program is available to enrolled members of federally recognized tribes. All counties in Oklahoma are eligible and there's no monthly mortgage insurance. Many tribes have programs that can assist with down payment and closing costs.

Oklahoma Housing Finance Agency (OHFA) Gold & Dream

OHFA pairs a 30-year fixed mortgage with 3.5% of the loan amount toward your down payment and closing costs. Gold is open to first-time homebuyers and has income limitations. The Dream program is open to repeat buyers and also has higher income limits. Both work with FHA, VA, USDA, and conventional loans. HUD-184 is only available under the Gold program.

Teachers, law enforcement officers, firefighters, EMTs, and state employees may qualify for a reduced interest rate. Income and purchase price limits are updated periodically.

What This List Doesn't Cover

These are the most common paths, but they aren't an all-inclusive list of what's available. City and county programs, nonprofits, employers, and lender-specific offerings change regularly, and one of them may fit your situation better than anything above.

Keep in mind, too, that the down payment isn't the only cash in play — closing costs, earnest money, and inspections belong in the plan. Gift funds from family are permitted on every program listed here, and seller credits can offset closing costs.

Start With a Conversation, Not a Home Tour

Notice what all of these have in common: the answer depends on details specific to you. Whether a property qualifies for USDA comes down to its exact address. Whether you fall inside OHFA's limits depends on your county, your household size, and which product you use. Whether 3% conventional beats 3.5% FHA depends on your credit profile and how the mortgage insurance math works out over the years you plan to own the home.

No calculator can sort that out, and that's exactly why so many people quietly rule themselves out of a home they could have bought.

The purpose of that first conversation isn't to sell you a loan. It's to find out where you actually stand and build a plan from there. Sometimes the plan is that you're ready now and didn't realize it. Sometimes it's that you're ten months out, and here are the things to work on between now and then. Either answer is useful. Not knowing is the only outcome that costs you something.

Let's find out which one is yours.