Down Payment Myths : What You Really Need to Buy a Home

One of the biggest barriers buyers face is the belief that they need a huge down payment. Let’s clear up some of the most common down payment myths.

Myth #1: You Need 20% Down

While 20% down can help you avoid private mortgage insurance, it’s not required for most loan programs.

Reality: Many buyers purchase with as little as 3–5% down, and some programs allow even less.

Myth #2: First-Time Buyer Programs Are Only for Low Income

Reality: Many programs are based on purchase price or location, not income alone.

Myth #3: A Larger Down Payment Is Always Better

Reality: Keeping cash reserves can be smarter, especially for maintenance and emergencies.

Myth #4: Down Payment Is the Only Upfront Cost

Reality: Closing costs are separate and should be planned for alongside your down payment.

What This Means for Madison Buyers

Home prices and competition vary by neighborhood. A knowledgeable local Realtor can help you understand which loan programs and strategies make sense for your goals.

If you’re unsure where to start, working with one of Madison’s top real estate professionals can make the process far less stressful.