You Don't Have to Be a First-Time Buyer to Put 5% Down (Yes, Really!)

Homebuyers get this wrong all the time!
I get asked this almost daily. Most people think that the only way to do 5% down is if you are buying your very first home. Nope. Not true.

Here’s the truth: You can use just 5% down even if you've owned a home before. Yup! You heard that right.

Here are some examples:

• You’re selling your home and buying a new one to live in? ✅ You can do 5% down.

• You’re keeping your current home as a rental and buying a new one to move into? ✅ 5% down still works.

• You’ve been renting for a while but owned a home in the past? ✅ Still eligible.

• You’re buying a second home like a cabin, or even a condo to stay in during the workweek? ✅ Totally fine.

• Buying a home for your kid in college or a parent who’s going to live there full time? ✅ That qualifies too.

Here's the one catch: you need to live in the home you're buying (or your family member needs to live in it full time). This is not for investment properties.

A few numbers to keep in mind:

• If the home is $500,000 or less → You only need 5% down.

• If the home is over $500,000 but under $1M → It’s 5% on the first $500K and 10% on the rest.

• If the home is over $1 million → You’ll need 20% down.

And yep, when you put less than 20% down, mortgage insurance is required. That’s totally normal. It doesn’t mean you’re risky—it just helps protect the lender and helps you qualify with a smaller down payment.

Some people choose 5% down so they can keep cash available to invest, renovate, or just stay flexible. Smart money move.

So if you’ve been sitting on the sidelines thinking “I won’t qualify,” I promise you—you probably do. Let’s talk about your options.

Money is a Tool - Use Wisely
Juliana Tardif