5 Down Payment Myths That Keep Buyers Renting Too Long

Myth 1: You need 20% down

Twenty percent avoids mortgage insurance on a conventional loan, but it isn’t required. Conventional loans can start around 3% to 5% down, FHA at 3.5% and VA at 0% for many eligible buyers.

Myth 2: Mortgage insurance is money down the drain

It’s a cost, but it can let you buy years sooner and start building equity. Learn more in PMI Explained.

Myth 3: Gift money doesn’t count

Most loan programs allow gifts from family members, with a signed gift letter and proof of transfer. Ask your lender about the rules before money moves.

Myth 4: Assistance is only for low incomes

Some programs serve moderate incomes and higher price ranges than people expect, especially in high-cost areas like Northern Virginia.

Myth 5: The down payment is the only cash you need

You’ll also need closing costs, often about 2% to 3% of the price here, plus moving costs and a cushion for repairs. See What Do Buyers Pay at Closing in Virginia?

On a $600,000 home	Down payment
3% down	$18,000
3.5% down (FHA)	$21,000
5% down	$30,000
10% down	$60,000
20% down	$120,000

Frequently asked questions

Can I use retirement savings?

Sometimes, but there can be taxes, penalties or repayment rules. Talk with your financial advisor first.

Is a bigger down payment always better?

Not always. Keeping an emergency fund matters too. Balance a lower payment against having cash for life’s surprises.