When it comes to buying a home, one of the most common misconceptions is that you need to have a down payment of 20% in order to qualify for a mortgage. However, this is not always the case, especially with a conforming loan.

A conforming loan is a type of mortgage loan that conforms to guidelines set by government-sponsored enterprises Fannie Mae and Freddie Mac. These loans are widely available and can be a great option for first-time homebuyers or anyone looking to purchase a new primary residence. One of the benefits of a conforming loan is that they often have less strict down payment requirements compared to other types of loans.

For example, first-time homebuyers can qualify for a conforming loan with as little as 3% down. This means that buyers who don't have a 20% down payment saved can still purchase a home. Additionally, buyers who are purchasing a new primary residence can also qualify for a conforming loan with as little as 5% down.

It's important to note, however, that while having a smaller down payment may make it easier to qualify for a loan, it also means you will have to pay more in interest over the life of the loan. Additionally, buyers with smaller down payments may also be required to have a higher credit score or meet other lending criteria.

In conclusion, while having a 20% down payment can be beneficial, it is not always a requirement to buy a home, especially with a conforming loan. These loans can offer more flexibility for buyers who are unable to put down a large amount and it's important to do your research and find the best option for your financial situation.