Down Payment Myths: What Most Buyers Get Wrong

One of the most common reasons buyers delay purchasing a home has nothing to do with credit, income, or even the market.

It’s a belief.

Specifically, the belief that you must put 20% down to buy a home.

While putting more down can make sense in some situations, it’s far from a requirement for many buyers. Unfortunately, this myth causes people to rule themselves out before understanding what’s actually possible.

Where the 20% Down Myth Came From

The idea of 20% down became popular because it can eliminate mortgage insurance and reduce the loan amount. Over time, that guideline turned into something that felt like a hard rule.

But lending guidelines and buyer situations aren’t one-size-fits-all.

Many buyers purchase homes with less than 20% down, depending on their goals, comfort level, and overall financial picture.

What a Down Payment Really Does

A down payment affects a few key things:

• The size of the loan
• The monthly payment
• How much cash you keep available after closing

What it doesn’t determine is whether you’re a “qualified” buyer or making a good decision. The right down payment amount depends on how all of these pieces work together.

Common Down Payment Options Buyers Use

In real life, buyers use a wide range of down payment amounts. Some choose to put more down to lower their monthly payment. Others choose to put less down so they can keep cash available for flexibility.

Neither approach is automatically better.

The goal isn’t to hit a specific percentage — it’s to choose an option that fits your situation.

Why Googling the Answer Only Goes So Far

You can find plenty of articles and calculators online that talk about down payments. Those resources can be helpful for general education, but they don’t know your goals, timeline, or comfort level.

What works well for one buyer may not make sense for another.

That’s why understanding how different down payment choices affect your monthly payment and cash position is more valuable than following a generic rule.

Download the Down Payment Myths Guide

I put together a short, educational guide that walks through common down payment myths and explains how buyers can think through their options more clearly.

👉 [Download the Down Payment Myths Guide]

This guide is purely educational. No applications. No credit pull. Just clarity.

When Talking It Through Makes Sense

Some buyers feel better putting more down. Others feel better keeping more cash available. The right option depends on your situation — not a rule of thumb you found online.

You can Google general advice all day, but it often helps to talk through the numbers with someone who can look at where you are right now and explain how each option plays out.

If you ever want to walk through it, I’m happy to help.

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Miles Nelson, NMLS #1967769
Summerlin Financial NMLS #1671311
Equal Housing Lender
Information provided is for educational purposes only and does not constitute a loan commitment.