How Much Down Payment Do First-Time Buyers Need in 2025?

Sticker shock still scares many would-be homeowners, but the 20 percent rule is old news. Thanks to flexible loan programs and state incentives, most first-time buyers in coastal North Carolina close with far less cash than they expect.

1. Low-Down-Payment Loan Options

• Conventional 97 (3 %) – Open to credit scores 620 +.

• FHA (3.5 %) – More forgiving on past credit hiccups; gift funds allowed.

• USDA & VA (0 %) – Zero down for eligible rural zones or qualified military buyers.
  Compare the pros and cons of each program, then dig deeper into rates in the mortgage pre-approval guide.

2. Layer Grants, Gifts, and Seller Credits

North Carolina’s First-Home Advantage Grant can add up to $15,000 toward down payment or closing costs. Many buyers combine grants with family gifts or seller-paid closing costs to shrink their cash-to-close. See a real-world example in Buying Your First Home.

3. Cash to Close ≠ Down Payment

Closing costs typically add 2–4 percent of the purchase price for taxes, insurance, and lender fees. Knowing the full figure helps you decide when Home vs. Renting tips in your favor.

4. Why 2025 Could Be Your Year

Forecasts call for stable demand and moderate rate drops. Our post New Year, New Home—How to Buy a House in 2025 explains why locking a mortgage now can pay long‑term dividends.

5. Next Steps

1. Gather the docs from our pre-approval checklist.

2. Meet a local lender to confirm grant eligibility.

3. Schedule a buyer consult with the Castro Team—we’ll craft a plan that lands keys without draining your savings.

Final Take 

– Most of our first-time clients close with 0–5 percent down. A strategic blend of loan programs, grants, and credits can open the door to ownership sooner than you think.