Saving up for a down payment is one of the most intimidating parts of buying a home. Friends and family love to give you advice, but sometimes it doesn’t apply or isn’t actually true. That is why today we want to talk about three myths about down payments so that you can separate fact from fiction.

“Finding, applying, and getting approved for down payment assistance can be challenging because they are run locally by the city or the county and not nationally.”

1. You need 20% down to buy a home. For decades previously, this was the standard, but it isn’t always the case anymore. In fact, it depends on what type of loan you have available such as using a Federal Housing Administration (FHA) loan that only requires 3.5% down. If you or your spouse served in the military, meanwhile, you may be eligible for a VA loan that is 0% down. Another 0% down loan is the USDA loan. Conventional loans can even require less than 20% if you’re a qualified buyer, but you may be required to pay PMI (private mortgage insurance) to the lender to prove you won’t default.

2. Cash is king. If you’ve been shopping in our competitive market you’ve more than likely heard about first-time homebuyers getting snubbed in favor of investors and cash buyers and that working with a loan will lessen your chances of buying a home. While there is some truth to this because cash guarantees that a seller can close on time without loan approval issues, it’s not always the case that they care about closing quickly. Oftentimes if you write a killer personal letter that resonates with the seller or even offer more money to prove you are motivated, you stand a better chance.

3. Down payment assistance is easy. I hate to burst your bubble, but finding, applying, and getting approved for this kind of loan can be challenging because they are run locally by the city or the country and not nationally. For you to get qualified, the biggest factor you have to consider is your income; if your income is higher, then you may not qualify.

Just don’t get discouraged, that’s why we’re here to help. If you need assistance with a down payment, we can put you in touch with lenders who are happy to share their expertise. All you have to do is call or email us. We look forward to speaking with you soon.