Once buyers in the Nashville area learn that some loan programs allow smaller down payments, a common follow-up question is: Should I put down more if I can?
It’s a thoughtful question, and the answer depends on several factors. A larger down payment can offer advantages, but it’s not always the best option for every buyer.
The Case for Putting Down More
A larger down payment reduces the amount borrowed, which may lower the monthly payment and decrease the total interest paid over the life of the loan.
Putting more down may also reduce or eliminate private mortgage insurance (PMI) sooner on conventional loans. For buyers who place at least 20% down, PMI is typically not required.
Some buyers also prefer starting with a higher equity position in their home, which can provide additional financial cushion if market conditions change.
The Case for Maintaining Savings
Homeownership can involve ongoing expenses that renters may not typically encounter. Repairs, maintenance4 ...

This is one of the most common questions buyers ask when starting the home search process in the Nashville area: How much do I actually need saved to buy a home?
 
Many people assume the answer is simply the down payment, but that’s only one part of the total upfront cost. Understanding the full financial picture can help buyers plan more confidently before speaking with a lender.
 
The Down Payment — The Starting Point
 
Depending on the loan program used, the down payment is typically a percentage of the purchase price. Some programs may allow lower down payments for qualifying borrowers, while others may require more.
 
Programs such as VA and USDA may offer options with no down payment for eligible borrowers. FHA and conventional loans typically require a smaller percentage down, and Tennessee’s THDA program may offer down payment assistance for qualifying buyers.
 
Closing Costs
 
Closing costs are separate from the down m ...

By Chasity Tucker | Benchmark Realty | TheChasityTucker.com | 931-802-0834

Private mortgage insurance — PMI — has a reputation problem. Ask most people what they know about it and you'll hear something like 'it's just extra money you're throwing away' or 'you should always avoid it if you can.'

That's not wrong, exactly. But it's not the full picture either. For a lot of first-time buyers, PMI is actually a reasonable trade-off that gets them into a home years before they'd otherwise qualify. Let me explain how it actually works.

What Is PMI?
Private mortgage insurance is a policy that protects your lender — not you — if you default on your loan. When you put down less than 20% on a conventional loan, the lender is taking on more risk. PMI is how they offset that risk.

It's worth noting that PMI only applies to conventional loans. FHA loans have their own version called MIP (mortgage insurance premium), which works a little differently. VA and USD ...

By Chasity Tucker | Benchmark Realty
One of the most common things I hear from buyers in the Nashville area is, “I didn’t realize there were that many options.” Mortgage guidelines can feel overwhelming, so here’s a straightforward breakdown of major loan programs available in Greater Nashville and what current requirements typically look like.
Conventional Loans — Low Down Payment Options
Conventional loans are issued by private lenders and are not government-backed. They offer flexibility in property type and loan size but generally require stronger credit and income documentation.
Some programs, such as Fannie Mae’s HomeReady and Freddie Mac’s Home Possible, allow qualifying buyers to put down as little as 3% with a minimum credit score around 620. Standard conventional loans often require 5% down.
If you put down less than 20%, you’ll pay private mortgage insurance (PMI) until sufficient equity is reached.
FHA Loans — Flex; ...

By Chasity Tucker | Benchmark Realty | TheChasityTucker.com | 931-802-0834
If you've been waiting to buy a home because you don’t have 20% saved, you’re not alone. This is one of the most common concerns I hear from buyers across the Greater Nashville area. And almost every time, the conversation ends the same way: the required savings amount was lower than expected.
So where did this rule come from — and why does it still influence so many decisions? Let’s break it down.
The Origin of the 20% Rule
The 20% down payment standard dates back to the mid-20th century. Before federally backed mortgage programs existed, lenders carried the full risk of every loan. If a borrower defaulted, the lender absorbed the loss.
To reduce risk, lenders typically required buyers to contribute 20% or more upfront. This provided financial protection for the lender and lowered the likelihood of default.
It was a practical lending model at the time. But today’s mortgage syy ...