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Do You Need 20% Down for a Home? Down Payment Guide
Published on August 19, 2026
Quick answer: No, you do not need a 20% down payment to buy a home in the Hudson Valley. Many qualified buyers can purchase a home with a much smaller down payment. The exact amount depends on their loan program, credit profile, income, and overall financial picture.
If you are planning to buy a home, you may have heard that lenders require a 20% down payment. This common myth can keep qualified buyers from exploring the options that may be available to them. At TEG, our local, expert mortgage officers can help homebuyers moving to the Hudson Valley review those options. A smaller down payment does not automatically mean delaying your Hudson Valley homeownership plans.
What to know:
- You may be able to buy with less than 20% down.
- First-time buyers may have access to low-down-payment programs, grants, or other assistance options.
- A TEG Mortgage Officer can help you compare choices and find a path that fits your goals.
Why Are So Many Repeat Buyers Putting More Down?
Some Hudson Valley buyers choose to make a larger down payment when it supports their broader financial goals.
According to the National Association of Realtors’ 2025 Profile of Home Buyers and Sellers, the typical repeat buyer now puts down 23%. That is the highest level since 2003, and more than double the 10% typical down payment for first-time buyers.
The main reason is equity. Over time, homeowners may reduce their mortgage balance while their home’s value increases. When they sell, that equity can become funds they use toward the down payment on their next home.
For many repeat buyers, using equity can make a larger down payment more realistic than it was during their first home purchase.
What About First-Time Homebuyers in the Hudson Valley?
The same NAR report found that first-time buyers now make up just 21% of the market, an all-time low, while their median age has climbed to 40, an all-time high. Higher home prices and limited inventory have made a full down payment harder for many Hudson Valley first-time buyers to reach.
That is why TEG’s Hudson Valley down payment assistance programs can be important. The Federal Home Loan Bank of New York offers the 2026 Homebuyer Dream Program, a suite of three grants. As a participating FHLBNY member, TEG Federal Credit Union can help qualifying first-time homebuyers apply for grant funds. These funds may go toward a down payment and closing costs.
Grant funds are limited. TEG awards them on a first-come, first-served basis. Contact one of our Mortgage Officers to review your eligibility and get pre-approved so that you can begin your home search with greater confidence.
Is a Bigger Down Payment Right for You in Hudson Valley?
You don’t need a larger down payment for your Hudson Valley home, but it may be worth considering if you have equity or savings available. Putting more down can lower your monthly payment, reduce total interest paid over the life of the loan, and, in some cases, help you avoid private mortgage insurance.
However, a bigger down payment is not always the best choice. Some buyers may prefer to keep cash available for moving expenses, repairs, renovations, or an emergency cushion. The right down payment for your Hudson Valley home depends on your full financial picture.
How Can TEG Help You Plan Your Next Home Purchase?
Whether you are buying your first home or planning your next move, a local conversation can make your options clearer. TEG Federal Credit Union helps with down payment questions for homebuyers throughout the seven-county Hudson Valley region, including Dutchess, Orange, and Ulster in the Mid-Hudson Valley, along with Putnam, Rockland, Sullivan, and Westchester counties, compare low down payment programs, grant opportunities, and mortgage solutions that align with their goals.
As a trusted local lender, TEG’s mortgage officers can help you estimate potential payments, compare loan options, and see how different down payment choices may affect your budget and timeline. Contact a TEG Mortgage Officer to discuss what makes sense for your situation and move forward with greater confidence.
Frequently Asked Questions
Do I need to put 20% down to buy a home?
No. Many loan programs allow qualified buyers to put down significantly less than 20% for a home in the Hudson Valley. A 20% down payment is common among repeat buyers, but it is not required.
How do I know if a bigger down payment is right for me?
It depends on your financial picture. A larger down payment can lower your monthly payment and reduce interest costs, but preserving cash for moving expenses, repairs, or savings may be more important for some buyers. A TEG Mortgage Officer can help you evaluate the down payment trade-offs for your Hudson Valley home.
What is the Homebuyer Dream Program?
The Homebuyer Dream Program is a suite of three grants offered by the Federal Home Loan Bank of New York. As a participating FHLBNY member, TEG Federal Credit Union can help qualifying low to middle income first-time homebuyers apply for grant funds toward down payments and closing costs.
Is the Homebuyer Dream Program grant funding guaranteed?
No. Funds are limited and awarded on a first-come, first-served basis to eligible applicants, so it is helpful to reach out early in your homebuying timeline.
Do I need to be a TEG member to apply for a mortgage?
To apply for a mortgage, you must either be a current member or become a member before closing. Membership is open to anyone, and their immediate families, who lives, works, worships, or attends school in one of TEG’s seven counties, with an initial $5 deposit. Buying a primary residence in one of these counties also qualifies you for membership.
Categories: General, Mortgage & Home Loans
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