Is putting 20% down really necessary to buy a home?

No — 20% down is a useful target, not a requirement. Its main benefit is avoiding private mortgage insurance (PMI) on a conventional loan, which typically runs 0.3%–1.5% of the loan amount per year. But you can buy with 3%–5% down on a conventional loan, 3.5% on FHA, or 0% on VA and USDA loans. The trade-off is a higher monthly payment, PMI until you reach 20% equity, and more interest over time. For many buyers, especially in expensive markets, waiting years to save 20% means paying more rent and possibly chasing rising prices. The smarter question is whether the total monthly cost fits your budget while leaving an emergency fund intact. Use wealthserene.com/tools/buy-now-vs-wait to weigh saving longer against buying sooner.