Five ways in. Most people only know one.
Almost everyone assumes buying a home means saving twenty percent. It doesn’t. The same $399,000 townhome can need eighty thousand dollars up front or under nine thousand, depending entirely on which door you walk through — and nobody hands you a map.
So here’s the map. Real numbers on the actual homes for sale, what each program requires, and who each one is for.
What it takes to get into each home.
Hartwig Co and Laura Mounter Real Estate & Co are not mortgage lenders, and nothing on this page is a loan offer, a pre-qualification, or a determination that any buyer qualifies for any program. Down payment figures are estimates based on published program rules as of August 2026 and cover the down payment only — closing costs, taxes, insurance, and HOA dues are additional. Program rules and county loan limits change. Confirm every number with a licensed mortgage lender before relying on it.
Who each one is for.
Conventional, 20% down
Open to any buyer who qualifies on credit and income. No membership or service requirement.
The version most people picture when they think of buying a house — and the reason many assume they cannot. It is not the only option, and for most buyers it is not the cheapest way in.
FHA
Open to any buyer who qualifies. Built for buyers with a thinner credit file or less saved, so the qualifying bar is lower than conventional.
The easiest program to qualify for, and the most expensive to carry. Low cash up front, permanent monthly insurance.
- Confirm this project is FHA-approved.
Section 184 — HUD Indian Home Loan Guarantee
Enrolled members of federally recognized tribes, and tribes and tribally designated housing entities. Current enrollment is required — Native descent alone does not qualify.
Less cash to close than FHA and no monthly mortgage insurance at all. It is the least-known program on this page and, for buyers who are eligible, frequently the strongest.
- Chelan County must fall within an approved program area.
- The county loan limit must cover the purchase price.
- Primary residence only — not available for a rental or second home.
VA
Veterans, active-duty service members, National Guard and Reserve members who meet service requirements, and certain surviving spouses. Requires a Certificate of Eligibility from the VA.
The only program here with no down payment requirement and no monthly mortgage insurance.
- Confirm this project is VA-approved or eligible for a one-time approval.
The words nobody explains.
Most of what makes home buying feel complicated is vocabulary. Here is the whole vocabulary.
The cash you put in up front. The rest is the loan. It is the number most people assume has to be 20% — it usually does not.
Both are mortgage insurance: an extra monthly charge that protects the lender, not you, when you put down less than 20%. PMI is the conventional-loan version and comes off once you build about 20% equity. MIP is the FHA version and on most new FHA loans it stays for the life of the loan. That difference can outweigh a lower interest rate.
The rate sets your monthly payment. The APR folds in lender fees and points, so it shows what the loan really costs. Two loans can post the same rate and have very different APRs — always compare the APR.
Money paid up front to buy the rate down. One point is 1% of the loan. It pays off only if you keep the loan long enough to recover what you spent.
An account your lender uses to collect property taxes and homeowner's insurance alongside your mortgage payment, then pays those bills for you. It is why the monthly total is higher than principal and interest alone.
A deposit made when your offer is accepted, showing you are serious. It is credited toward your purchase at closing — it is not an extra cost, though it can be at risk if you walk away outside the terms of the contract.
Pre-qualified is an estimate from numbers you told a lender. Pre-approved means they verified your income, assets, and credit. Sellers take pre-approval seriously; pre-qualification carries much less weight.
Fees to finalize the purchase — lender charges, title, appraisal, recording, prepaid taxes and insurance. Typically a few percent of the price, on top of your down payment. Sometimes negotiable with the seller.
Straight answers.
Do I really need 20% down to buy a house?
No. Twenty percent avoids monthly mortgage insurance, but every other program on this page requires less — conventional loans go to 5%, FHA to 3.5%, Section 184 to 2.25%, and VA to zero. The 20% figure is the most common and most expensive misconception in home buying.
What is the difference between PMI and MIP?
Both are mortgage insurance, an extra monthly charge that protects the lender when you put down less than 20%. PMI is the conventional-loan version and can be removed once you reach roughly 20% equity. MIP is the FHA version, and on most FHA loans made today it lasts the life of the loan. That difference can cost more over time than a slightly higher interest rate.
What is a Section 184 loan and who qualifies?
Section 184 is the HUD Indian Home Loan Guarantee Program. It is available to enrolled members of federally recognized tribes, as well as tribes and tribally designated housing entities. Current enrollment is required — Native descent alone does not qualify. It requires 2.25% down on loans over $50,000, charges a one-time 1% guarantee fee that can be financed, and carries no annual mortgage insurance on loans closed on or after July 1, 2023. It is for primary residences only, and the property must be within an approved program area.
Why is Section 184 often better than FHA for someone who qualifies?
Two reasons. The down payment is lower — 2.25% against FHA's 3.5% — and there is no monthly mortgage insurance at all, where FHA's typically lasts the life of the loan. For an eligible buyer that is less cash at closing and a lower payment every month afterward.
Who qualifies for a VA loan?
Veterans, active-duty service members, National Guard and Reserve members who meet service requirements, and certain surviving spouses. You will need a Certificate of Eligibility from the VA. There is no down payment requirement and no monthly mortgage insurance, though most first-time users pay a funding fee of about 2.15%, which can be financed and is waived for veterans receiving compensation for a service-connected disability.
What is the difference between an interest rate and an APR?
The interest rate determines your monthly payment. The APR includes lender fees and points on top of the rate, so it reflects what the loan actually costs. Two loans can advertise the same rate and have very different APRs. Compare the APR.
How much do I need beyond the down payment?
Closing costs, typically a few percent of the purchase price, covering lender fees, title, appraisal, recording, and prepaid taxes and insurance. You will also owe property taxes, homeowner's insurance, and HOA dues on an ongoing basis. Ask a lender for a Loan Estimate, which itemizes all of it before you commit.
Not sure which one applies to you?
That’s a normal place to start. Shaunna Larson can point you to a lender who will walk through it with no obligation.
Hartwig Co and Laura Mounter Real Estate & Co are not mortgage lenders, and nothing on this page is a loan offer, a pre-qualification, or a determination that any buyer qualifies for any program. Down payment figures are estimates based on published program rules as of August 2026 and cover the down payment only — closing costs, taxes, insurance, and HOA dues are additional. Program rules and county loan limits change. Confirm every number with a licensed mortgage lender before relying on it.