Think you need 20% down to buy a home? Think again. In Step 5 of the 10-Step How to Buy a Home System, David Sidoni breaks down how much you really need to save — and how to start now, even if you’re juggling debt.

Saving for a home is the step that scares most renters away from ever getting started. In this episode, David busts the biggest myth in homebuying — that you need a massive 20% down payment — and replaces it with a realistic, data-backed plan to get you there faster.

You’ll learn the simple formula to estimate your goal: 8% of your home’s price (5% down + 3% closing costs). That’s the true, conservative number for most first-time buyers — and for many, it can be even less.

David walks through how real buyers used creative strategies and pro guidance to shrink their out-of-pocket costs to as little as 1–5%. From zero-down loans to grants and seller credits, this episode shows how working with a Unicorn Team early opens doors you didn’t know existed.

You’ll also hear real-world examples like Nick (Episode 399), who expected to need tens of thousands for closing — but ended up bringing only $4,000 to the table and even got money back.

The key message: Don’t wait until you think you’ve saved “enough.” Waiting costs you time, opportunity, and money. Learn how to plan smart, start early, and move forward with confidence.

“If you think you need 20% down, you’re already behind the truth. Most first-time buyers use 3.5% or 5%, and some even less. Waiting to ‘save enough’ could cost you thousands.”

Highlights

• Myth Busted: Only 8–9% down is typical for first-time buyers — not 20%.
• Your Real Goal: Start with the 8% formula (5% down + 3% closing costs).
• Example: $400,000 home = $32,000 total savings target.
• Start Early: Work with a Unicorn Team before you hit your goal — they’ll help you find options that reduce how much you need.
• Buyer Story: Nick (Ep. 399) bought with just $4K out-of-pocket — and got a refund check.
• Options That Work: 3.5% FHA loans, down payment assistance, seller credits, and even 0% down programs.
• Emotional Truth: Stop assuming homeownership is out of reach. Education and strategy make it possible sooner than you think.

Referenced Episodes

• 388 – The Playbook Vol. 1: The Rent Replacement Strategy
• 389 – The Playbook Vol. 2: Your Last Lease Ever
• 348 – How Much Do You Really Need for Closing Day?
• 399 – The Real Value of Buying: What Nick Gained Beyond a Mortgage
• 380 – This Should Have Been Impossible – But Rosie Actually Did It (Interview)
• 189 – VA Loans: Bad for Buyers or a Christmas Miracle?
• 358 – Interview: How to Buy a Duplex at 22 with $12K
• 321 – Buying in a High-Cost Area – Long Island, NY (Interview)
• 121 – When to Back Out of the Deal – Interview with a First-Time Buyer
• 113 – Interview with a Single Female First-Time Home Buyer in 2022
• 75 – Inspection Red Flags, New Tips for 2022 Bidding Wars, and To Wait or Not to Wait?
• 58 – How to Use Your Retirement Savings to Buy Your First Home the Safe Way
• 22 – How to Financially Prepare to Buy Your First Home – Part IV
• 273 – Buying a Home in 11 Days! Single Mom Becomes Atlanta Homeowner (Interview)
• 19 – How to Financially Prepare to Buy Your First Home – Part I
• 371 – Top Budgeting Apps for First-Time Buyers in 2025
• 381 – Saving While in Debt: How Much Do First-Time Buyers Really Need in 2025?
• 194 – Interview – Making the Impossible Purchase Possible
• 169 – Woman Power: This Single Woman Bought Her First Home
• 239 – Interview: Using the VA Loan for Zero Down
• 161 – Achieving the American Dream: An Interview with Sally
• 7 – First-Time Home Buyer – 1, 2, 3

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David Sidoni, the "How to Buy a Home Guy," is a seasoned real estate professional and con