What You Think You Need vs. What You Actually Need

One of the biggest reasons renters delay buying a home is simple:
They think they need way more money than they really do.

The truth?
Most down payment beliefs you hear online, from friends, or even from other agents…They 
They are completely wrong.

Today, let’s bust the biggest down payment myths holding first-time buyers back — so you can move forward with clarity and confidence.

❌ Myth #1: “You need 20% down to buy a home.”

This is the #1 myth in real estate.

✔️ Reality: Most first-time buyers put 3%–5% down, and many programs allow even less.
✔️ FHA loans require just 3.5%.
✔️ VA loans require 0% down for eligible military families.

A 20% down payment is not the standard — it’s simply one option.

❌ Myth #2: “If I don’t put 20% down, I can’t buy.”

Putting less than 20% down may mean paying PMI (private mortgage insurance), but PMI:

• It is much cheaper today than it used to be

• Often drops off automatically once you reach 20% equity

• Allows you to buy sooner, start building equity, and avoid rising rents

For many buyers, waiting to save 20% actually costs more in the long run.

❌ Myth #3: “I need perfect credit to qualify for a low down payment.”

Nope.

✔️ FHA works with credit scores as low as 580
✔️ VA loans have no minimum score requirement (lenders have guidelines, but they’re flexible)
✔️ Some conventional loans accept lower scores with compensating factors

Perfect credit helps — but it’s not required.

❌ Myth #4: “Zero-down loans are risky.”

This one stops many military families from using their VA loan benefit — one of the BEST programs available.

✔️ VA loans have no PMI
✔️ Lower interest rates
✔️ Flexible credit requirements
✔️ Strong protections for buyers

Zero-down does not mean risky when the loan program is designed for it.

❌ Myth #5: “You need all your down payment saved before you apply.”

You can get:

• Grants

• Down payment assistance

• Seller credits

• Lender incentives

• Builder incentives

In Texas, buyers often cover very little upfront thanks to local assistance programs and negotiated credits.

You don’t need a giant bank account to start the process.

❌ Myth #6: “My down payment is the biggest cost.”

Not always.

Buyers often spend more on:

• Closing costs

• Inspections

• Appraisals

• Prepaid taxes and insurance

Good news:
Many of these can be negotiated, covered by seller concessions, or reduced for VA loan buyers.

❌ Myth #7: “Renting is safer until I save more money.”

Here’s the truth:
Rent increases.
Homeownership builds equity.
And every month you wait is a month you’re paying someone else’s mortgage.

Many renters could buy right now with less money than they think.

🧠 Final Thoughts

Down payments confuse a lot of buyers — especially those getting their first home or moving with military PCS orders. But once you know the truth, the path forward becomes much clearer.

You don’t need perfect credit.
You don’t need 20%.
And you might not need a down payment at all.

If you're unsure which programs you qualify for, I can help you figure it out in minutes.

📞 Ready to find out how much you actually need to buy a home?
Let’s talk — no pressure, just honest answers.