How Much Money Do You Need To Purchase a Home?

How Much Money Do You Need To Purchase a Home?

One of the biggest questions homebuyers have, especially in the Chicago suburbs, is how much money they actually need for a down payment. Most people assume 20% is required because that’s what their parents or grandparents did. But that’s no longer the case. If you're buying in DuPage County, Glen Ellyn, Wheaton, or Lombard, you might be surprised by how little you need to get started.

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Understanding Down Payment Options in the Chicago Suburbs

The idea that every homebuyer needs 20% down is outdated. In reality, there are several loan programs that allow buyers to purchase a home with as little as 0% down, depending on your situation.

Common Loan Programs and Minimum Down Payments

Here’s a quick breakdown of the most common down payment options:

• Conventional Loans – As little as 3% down

• FHA Loans – Minimum 3.5% down

• VA Loans – 0% down for eligible veterans, active duty, or Coast Guard

• USDA Loans – 0% down in rural qualifying areas (less common near Chicago)

These programs are available throughout the West and Northwest suburbs, including towns like Glen Ellyn and Wheaton.

Is 20% Still a Good Idea?

If you’re in a strong financial position, a 20% down payment can reduce your monthly payment and eliminate mortgage insurance. But for many buyers, especially those in competitive Chicago suburban markets, putting down less and keeping more cash on hand may offer greater flexibility.

When a Smaller Down Payment Makes Sense

Putting down less money might be a smart move if:

• You’d prefer to keep emergency savings intact

• You want to invest in home updates after moving in

• You’re payment-sensitive and need to manage monthly expenses

• You want to keep some funds available for unexpected repairs

The key is finding the right balance between what you qualify for, what feels comfortable, and what supports your long-term financial goals.

We’ll Help You Connect the Dots

At The Bulava Group, we help buyers across DuPage County understand the different loan and down payment options available to them. While your lender will run the numbers and outline what you qualify for, we’ll guide you through the bigger picture, so you know what to expect, how to prepare, and how each option fits your goals. Whether you're buying your first home or your next, we’ll make sure you’re confident in every step.

Have questions about buying or selling in DuPage County? We’re happy to help, just reach out!