Start with the truth: you probably need less than you think
The single biggest myth in home buying is that you need 20 percent down. Somewhere along the way that number became gospel, and it keeps people renting for years longer than they need to. The reality here in Clark County and across the Portland metro is that most buyers put down far less, and plenty of them buy with almost nothing out of pocket. The 20 percent figure is not a rule. It is one specific threshold that helps you avoid a certain kind of mortgage insurance on a conventional loan, and that is it.
So the honest answer to how much you need is: it depends on your loan type, your credit, and your goals. Let me walk you through what each program actually requires, and then help you think about how much you should put down, which is a different question entirely.
What each loan program actually requires
Different loans set different floors. Here is the landscape most buyers in Southwest Washington and Oregon are choosing from:
- Conventional loans: as little as 3 percent down for many first-time buyers, and 5 percent for others. Once you reach 20 percent equity you drop private mortgage insurance, but you do not have to start there.
- FHA loans: 3.5 percent down with a qualifying credit score. These are popular with first-time buyers and folks rebuilding credit because the guidelines are more forgiving.
- VA loans: zero down for eligible veterans, active-duty service members, and many surviving spouses. No monthly mortgage insurance either, which is a real advantage.
- USDA loans: zero down for homes in eligible rural areas, and parts of Clark County and the surrounding region qualify. There are income limits, so it is worth checking your specific address.
Notice that two of these four options can require nothing down. If you have served, or you are buying in an eligible area, a low down payment is not a stretch, it is the standard.
The difference between what you need and what you should put down
Meeting the minimum gets you in the door, but the smarter question is how much you should put down for your situation. More down means a smaller loan, a lower monthly payment, and often a better rate. Less down means you keep more cash in your pocket for moving costs, furniture, repairs, and an emergency fund. Neither is automatically right.
Here is how I coach buyers to think about it. If putting 20 percent down would drain your savings to zero, that is usually a bad trade. Owning a home comes with surprises, a water heater here, a roof repair there, and being house rich and cash poor is a stressful way to live. On the other hand, if you have comfortable reserves and putting a little more down gets you under a mortgage insurance threshold or into a payment you love, that can be money well spent. The goal is a payment that works and a cushion that lets you sleep at night.
Do not forget the other cash you will need
Your down payment is not the only money that shows up at closing. Buyers are often surprised by the additional costs, so plan for them from the start:
- Closing costs: lender fees, title, escrow, appraisal, and prepaid items like taxes and insurance. These are separate from your down payment.
- Earnest money: a good-faith deposit when your offer is accepted, which typically credits back toward your down payment or closing costs at the table.
- Reserves: some loan types want to see a few months of payments in the bank after closing.
- Moving and setup: the unglamorous but real costs of actually getting into the home.
The good news is that some of this can be offset. Seller-paid closing costs, lender credits, and down payment assistance programs in Washington and Oregon can all reduce the cash you bring. A strong loan officer structures the deal so you are not leaving money on the table.
Common mistakes I see buyers make
The most expensive mistake is waiting years to save 20 percent while home prices and rents keep climbing. In a market like ours, the cost of waiting often outweighs the mortgage insurance you were trying to avoid. Mortgage insurance is not permanent on a conventional loan, and it can be removed as you build equity. Delaying your purchase to dodge it can cost you far more than the insurance itself.
The second mistake is emptying your savings to make a bigger down payment, then having no buffer when life happens. The third is assuming you do not qualify because you cannot hit some imagined number. I talk to people all the time who assumed they were years away and turned out to be ready now.
How to figure out your number
This is where a real conversation beats a calculator. Your ideal down payment depends on your credit, your loan type, the home price, your monthly comfort zone, and how much cushion you want to keep. There is a version of this that fits almost every situation, and part of my job is finding it with you. A useful strategy in a higher-rate environment is to keep your down payment reasonable, structure a rate buydown if it helps the payment, and plan to refinance later if rates improve. Marry the house, date the rate, as I like to say.
Every situation is different, and the specifics vary based on your credit, down payment, loan type, and overall picture. Nothing here is a commitment to lend. But if you want a clear answer built around your actual numbers instead of a national average or a myth about 20 percent, that is exactly what I do for buyers across Vancouver, Clark County, and the greater Portland metro.
Ready to find your number? Take the quick quiz to get personalized guidance and I will help you map out a down payment plan that fits your life, not someone else's rule of thumb.
Rates and figures cited are as of August 3, 2026 from public sources and change daily; they are illustrative, not a rate quote or a commitment to lend. Your actual rate depends on your credit, loan type, property, and market conditions. Connor Webb, NMLS #1529504; Envoy Mortgage, Ltd., NMLS #6666. Equal Housing Lender.