If you’ve been casually checking out listings or daydreaming about owning a home in Charleston, you’ve probably noticed one thing, home prices are not cheap. Homes in Charleston County, SC are averaging around $615,000, and that number climbs fast if you’re looking anywhere close to the beach, downtown, or in towns like Mount Pleasant.

So naturally, one of the biggest questions I hear is: how much do I need to save for a down payment?

A lot of folks still think the answer is 20%. That’s the old-school advice, and while it’s not exactly wrong, it’s just not the full picture.

Let’s Break That 20% Myth

A 20% down payment on a $615K home is $123,000. That’s a big chunk of change, and for most buyers, especially first-timers, it’s just not feasible. You don’t need to put down 20% to buy a home, though, not even close.

Depending on the type of loan you use, you might be able to buy with:

• 3% down (conventional loan): $22,500

• 3.5% down (FHA loan): $26,250

• 0% down (VA or USDA loan): $0—if you qualify

These lower down payment programs aren’t rare or risky. They’re how most people buy homes today, especially in competitive markets like ours.

The Real Cost to Close

Down payment is just part of the equation. You’ll also need to cover closing costs, which usually run 1% to 3% of the purchase price. On a $615K home, that’s anywhere from $6,150 to $18,450. That includes things like lender fees, title insurance, taxes, and escrow, plus you’ll want a cushion for inspections and the appraisal, maybe $1,000–$2,000 more.

So if you’re putting down 3%, you’re really looking at a total out-of-pocket cost somewhere between $20K and 40K. Still a large chunk of money but much more doable than trying to save six figures.

What Happens When You Put Less Down

Choosing a smaller down payment can make homeownership more accessible, especially if you’re ready to buy but still building up savings. It does come with some tradeoffs, though.

You’ll likely pay private mortgage insurance (PMI), which gets added to your monthly mortgage and protects the lender in case you default. PMI typically stays in place until you’ve built up about 20 percent equity in your home. You may also see a slightly higher interest rate and a higher monthly payment compared to someone putting down more.

Still, for many buyers, the ability to enter the market sooner outweighs the extra cost. In Charleston, where prices have stayed strong even through market shifts, the longer you wait, the more you risk paying down the road.

So, Should You Wait?

If your main goal is to avoid PMI or lock in the lowest possible monthly payment, waiting might be a smart move. Saving more could get you better loan terms and leave you with more breathing room after closing.

Still, in a market like Charleston, where prices continue to rise, waiting too long can mean missing the window. The home that fits your needs and budget today will not be there six months from now.

It is also worth remembering that putting down less does not mean you are unprepared. If you have steady income, manageable debt, and some savings set aside, you may be in a stronger position than someone who empties their account just to hit a higher down payment.

Bottom Line

Don’t let the 20% myth hold you back. Most people in Charleston aren’t making a down payment that high, yet they’re still getting into homes they love.

Instead of focusing on a number, focus on the plan: how much do you feel comfortable putting down? What monthly payment fits your lifestyle? What neighborhoods feel right for the long haul?

That’s the starting point.

When the time feels right, I’ll help you sort through the numbers and next steps. No pressure with just a clear path forward.

*numbers pulled as of 8/4/25 NAR