Stop stressing: You don't need a 20% down to buy a home

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Many Americans may be unnecessarily talking themselves out of homeownership. Thirty-seven percent of nonhomeowners say not having enough saved for a down payment is holding them back from homeownership, but 62% of Americans incorrectly believe you have to have at least 20% of a home's purchase price to buy, according to NerdWallet's 2020 Home Buyer Report.

The truth is: You don't need 20% of a home's price to buy it. Some lenders offer mortgages with as little as 3% down. So, how do you know just how much you need to save up based on your specific goals? It requires a little strategizing.

Before you can zero in on a down payment target, you have to determine how much home you can afford and when you'd like to start home shopping.