For many people, the dream of owning a home feels out of reach, and the main reason often comes down to one thing the down payment. Over the years, misinformation has spread about how much you actually need to buy a home, leaving many would-be homeowners believing they must save for years before taking the leap. But the truth is, most of what people believe about down payments simply isn’t true.
Let’s clear the air.
Myth 1: You Need a 20% Down Payment to Buy a Home
This is probably the most common myth out there. While putting 20% down can help you avoid private mortgage insurance (PMI), it’s not a requirement to buy a home. In today’s market, there are several mortgage programs that allow buyers to put down as little as 3% and some even offer 0% options for qualified applicants.
For example, FHA loans typically require only 3.5% down, while VA and USDA loans offer zero-down financing for eligible buyers. That means if you’re purchasing a $300,000 home, your down payment could be as low as $10,500 — not the $60,000 you may have feared.
Myth 2: You Must Pay the Entire Down Payment from Savings
Another big misconception is that your down payment has to come directly from your personal savings. In reality, many lenders allow you to receive gift funds from family members or close relatives to help with your purchase. There are also grant and assistance programs that provide funds toward down payments and closing costs — sometimes with no repayment required.
Myth 3: Down Payment Assistance is Hard to Qualify For
Many buyers assume they won’t qualify for assistance because of their income or credit score. However, several state and local programs are designed specifically for middle-income earners and first-time buyers. States like Florida, Massachusetts, and Connecticut have programs that make homeownership more attainable through down payment assistance, tax credits, and low-interest loans.
Even if you think you won’t qualify, it’s worth exploring your options. These programs are often easier to access than you might expect — and could save you thousands of dollars.
Myth 4: It’s Better to Wait Until You Can Save More
While saving more is always a good thing, waiting too long can backfire. Home prices and interest rates tend to rise over time, which means waiting could cost you more in the long run. The market doesn’t always wait for perfect timing. If you’re financially stable, have consistent income, and can afford the monthly payments, you may already be more ready to buy than you think.
Myth 5: You Can’t Buy a Home if You Have Debt
Having some debt doesn’t automatically disqualify you. Lenders look at your debt-to-income (DTI) ratio, not just the fact that you owe money. As long as your debt payments are manageable relative to your income, you can still qualify for a mortgage. Many successful homeowners bought their first homes while paying off student loans, car notes, or credit cards.
The Truth: You Might Be Closer to Homeownership Than You Think
If you’ve been putting off your homeownership dreams because of these myths, now’s the time to rethink your strategy. The path to buying a home is much more flexible and achievable than most people realize.
At Properties with Amber, we’re helping buyers across Florida, Massachusetts, and Connecticut understand the real facts about homeownership — and take practical steps toward owning their first home.
To make it easier, we’ve created a detailed resource titled “The Complete Homebuying Step-by-Step Guide for First-Time Homebuyers.” This guide breaks down every stage of the homebuying journey from understanding financing options to preparing for closing day so you can make informed decisions without feeling overwhelmed.
Your dream home is possible, and with the right information, you can start sooner than you think.
