The Truth About Down Payments (It’s Not What You Think)

Buying a home is exciting, until the down payment starts feeling overwhelming.
You might be thinking:

• “I’ll never save enough.”

• “I need a fortune to get started.”

• “Maybe I’ll rent forever.”

If that sounds familiar, you’re not alone—and you’re definitely not out of options.

Busting the Big Down Payment Myths

Myth 1: “I need a huge down payment.”

Most buyers don’t need 20% down. In fact, the National Association of Realtors reports that first-time buyers typically put down just 6% to 9% since 2018. And if you qualify for certain loans, the barrier is even lower:

• FHA loans may require only 3.5% down

• VA loans often require 0% down for eligible veterans

Myth 2: “Saving that much will take forever.”

It might seem slow to build up a down payment, but not as slow as you might think. A recent study shows that, depending on your location and earnings, it may only take a few years to save, even for amounts like 10%. And remember, you probably don’t need that much. 

Myth 3: “I have to do it all by myself.”

Not at all. There are thousands of down payment assistance programs available, yet 39% of prospective buyers don’t even know they exist. These programs are designed to help buyers like you with the initial costs of homeownership. As Miki Adams, President at CBC Mortgage Agency, aptly puts it:

“With high interest rates and soaring home prices, down payment assistance is more essential than ever.” 

If you’ve been putting off homeownership because of down payment worries, it’s time for a fresh perspective. You likely need less than you think, and you don’t have to figure it out on your own. The resources and support are out there, you just need the right guidance.

Ready to explore your options and take the next step toward owning your home? Let’s chat, I’m here to help you start your journey today.

Sources: Keeping Current Matters.