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HARLOTTE, N.C., Sept. 06, 2025 (GLOBE NEWSWIRE) – The belief that a 20 % down payment is mandatory for homeownership is fading. In a feature on HelloNation, Julie P. Tuggle, founder of Carolina Buyer’s Agent, explains how buyers can often secure a mortgage with only 3 % to 5 % down, thanks to modern loan programs and assistance initiatives.
The 20 % benchmark dates back to a time when lenders demanded large upfront sums to mitigate risk. While a larger down payment can eliminate private mortgage insurance (PMI), it is no longer the sole route to owning a home. Today’s options—FHA, VA, USDA, and conventional loans—offer flexible down‑payment requirements. For many, entering the market sooner with a smaller down payment is more advantageous than postponing for years to amass the traditional amount.
Charlotte’s real‑estate scene has shown consistent appreciation. Delaying purchase can mean higher prices and reduced affordability. By leveraging programs that allow 3 % to 5 % down, buyers can start building equity earlier, benefiting from both property appreciation and loan repayment over time. The trade‑off is typically PMI, which adds to monthly costs but can be viewed as a gateway fee: a modest monthly expense that enables earlier entry, wealth accumulation, and the end of rent payments. Once equity reaches 20 %, PMI can usually be removed, leaving the homeowner with an appreciated asset.
Loan choices vary by buyer profile. FHA loans are popular among first‑timers because of low down‑payment thresholds and lenient credit criteria. Conventional loans may also accommodate smaller down payments, though insurance terms differ. VA loans offer significant advantages for eligible veterans and military families, requiring no down payment and no PMI. USDA loans cater to rural buyers, providing zero down‑payment options in qualifying areas near Charlotte.
Down‑payment assistance further expands opportunities. The North Carolina Housing Finance Agency offers forgivable loans and grants to first‑time buyers and qualifying families, covering portions of the down payment or closing costs. Mecklenburg County and the City of Charlotte run similar programs, helping households with steady income but limited savings bridge the gap. These resources can be transformative for buyers ready to move forward but needing upfront support.
The urgency in Charlotte’s market is clear. With steady population growth and strong demand, homes across the metro area continue to hold and increase in value. For many, purchasing sooner with a modest down payment outweighs the risk of waiting for prices to climb.
The full article, “Myth vs. Fact — You Don’t Need 20 % Down,” features Julie P. Tuggle’s insights on how contemporary mortgage programs and assistance options grant Charlotte buyers unprecedented flexibility.
About HelloNation
HelloNation is a leading media platform that connects readers with trusted professionals and businesses across diverse industries. Through its innovative “edvertising” model—blending 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 spotlights leaders making a meaningful impact in their communities.
Patrick McCabe
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www.hellonation.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aa2f0156-2c2a-49f8-962a-4efd24349aaa
