Down Payment Myths That Stop Buyers From Buying Too Early

One of the most common things I hear from buyers is:

“We’re just waiting until we have 20% down.”

And most of the time, that wait isn’t necessary.

The idea that you must put 20% down to buy a home is one of the most persistent myths in real estate. It’s well-intentioned advice that often does more harm than good.

Where the 20% Myth Came From

Putting 20% down can eliminate mortgage insurance and reduce monthly payments.
That part is true.

But somewhere along the way, “helpful option” turned into “hard requirement.”

It isn’t.

What Many Buyers Don’t Realize

Depending on the loan program and your overall financial picture, some buyers qualify with:

10% down
5% down
Even less in certain situations

The right down payment isn’t a number.
It’s a strategy.

The Hidden Cost of Waiting

While saving is smart, waiting too long can come with trade-offs:

Rising rent
Rising home prices
Missed appreciation
Fewer options later

Sometimes, buyers spend years trying to reach a number they didn’t actually need in the first place.

The Better Question to Ask

Instead of asking:

“How much do I need to put down?”

Try asking:

“What options make sense for my situation right now?”

That shift alone can unlock clarity and confidence.

You don’t lose by asking questions.
You lose by assuming answers.

—
Dino Katsiametis
CEO, Ethos Lending