Mortgage lenders do not require a 20% down payment for a home purchase. Prospective home owners can make 0% down payment with a Veterans mortgage (with eligibility) and 0% for a USDA loan (in eligible areas like Loudoun county ). Fannie Mae and The Virginia Housing Development Authority sponsor a 3% down payment conventional loan to $417,000 that allows for funds to come from a family gift. There are 5% down payment conventional programs that also allow for gift funds and offer lower mortgage insurance payments. FHA loans are available with 3.5% down payment. In the last couple years the insurance premiums charged by FHA have increased payments and costs for using the program. Non-conforming institutional loans above $625,500 usually do require 20% down payments. Speak to a mortgage loan officer about your qualifications before home shopping.
