Buying Your First Home May Be Closer Than You Think — Two Things to Reconsider
“I need to save more for a down payment, so I probably have to wait a few more years.”
“I want my first home to be a good home that I can stay in for a long time.”
These are common concerns for first-time buyers. But if you rethink your target home price and down payment expectations, your timeline for becoming a homeowner may change.
According to a Keeping Current Matters article published on October 5, 2026, two approaches that may help first-time buyers purchase sooner are considering a more affordable first home and reconsidering the idea that you must put 20% down.
First, Prioritize What Matters Most in Your First Home
If you want your first home to have everything— a large single-family home, a newly renovated kitchen, and a great location—your required budget can increase significantly.
Instead, start by identifying the features that are truly essential to your lifestyle. Then look for areas where you can compromise, such as size or interior finishes.
For example, if school districts and commute times are your top priorities, consider smaller single-family homes, townhomes, and condos within the same area. A home may still be worth considering even if the kitchen isn’t brand new, as long as the layout and overall condition are good.
However, don’t make a decision based on price alone. With an older home, consider potential costs such as roof or HVAC replacement. For condos and townhomes, review HOA fees and the possibility of special assessments.
The goal of a first home should be to find a starting point that allows you to comfortably manage your living expenses and continue saving after the purchase.
Second, You Don’t Necessarily Need 20% Down
A 20% down payment can reduce your loan amount and monthly payment, but it is not required for every mortgage program.
Depending on your qualifications and loan program, some conventional loans may allow down payments as low as 3%, while FHA loans can require as little as 3.5%. However, putting less money down means borrowing more and may result in additional costs such as mortgage insurance.
For example, on a $350,000 home:
20% down: $70,000
10% down: $35,000
5% down: $17,500
These figures only represent the down payment. Buyers also need to budget for closing costs, moving expenses, and an emergency fund after closing. Your eligibility for a particular down payment option will depend on the lender’s approval.
The important question isn’t simply how little cash you can put down. It’s how much you can comfortably afford each month after purchasing the home.
In the Chicago Suburbs, Compare the Total Cost of Housing
If you’re looking for your first home in areas such as Naperville, Northbrook, Glenview, Buffalo Grove, or Vernon Hills, compare the total monthly housing cost, not just the purchase price.
That can include:
Mortgage principal and interest
Property taxes
Homeowners insurance
HOA fees
Estimated maintenance and repair costs
Also, check whether the seller’s current property taxes include exemptions or other adjustments that may not apply to you after the purchase.
Illinois buyers may also want to explore IHDA down payment and closing-cost assistance programs. Eligibility and repayment requirements vary, so speak with a participating lender to determine which options may apply to you.
Start With These Three Numbers
If you’re preparing to buy your first home, start by identifying:
How much cash you currently have available
The total monthly housing cost you can comfortably afford
How much you want to keep in savings as an emergency fund after closing
Once you know these numbers, it becomes much easier to determine what types of homes realistically fit your budget.
If you’re considering buying your first home in the Chicago suburbs, contact Chicago Realtor Sang Han. We can look at your preferred areas and lifestyle needs and help you explore realistic home types and purchasing strategies.
Chicago Realtor | Sang HanChicagoBDB LLC | Platinum Partners Realtors
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