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5 Down Payment Myths That Might Be Holding You Back from Buying a Home

May 7, 2026

For many buyers, the biggest obstacle to purchasing a home isn’t always interest rates or inventory. The truth is, it’s uncertainty. We talk with buyers every day throughout Ann Arbor, Saline, Jackson, Dexter, and surrounding Southeast Michigan communities who assume homeownership is still years away because of outdated information about down payments.

At Norfolk Homes, one of the most important parts of our job is helping buyers feel informed and confident. With decades of experience under our belts, we can confidently say that many of the most common beliefs about buying a home simply aren’t accurate anymore. And, in today’s market, waiting based on misinformation can sometimes cost more in the long run.

If you’ve been exploring new homes in Ann Arbor or wondering whether now is the right time to buy, here are some of the most common down payment myths we hear, and what buyers should actually know.

Myth #1: “You Need 20% Down to Buy a Home”

This is by far the biggest misconception we encounter. While putting 20% down can help reduce monthly payments or eliminate private mortgage insurance in some situations, it is absolutely not required for many buyers. In fact, there are loan programs available that may allow qualified buyers to purchase with as little as 0–5% down, depending on eligibility and lender guidelines.

The key is qualification. Every buyer’s financial situation is different, which is why pre-approval is such an important first step. At Norfolk Homes, we work closely with trusted lending partners who help buyers understand what options may be available to them before they begin shopping for a new construction home in Ann Arbor or surrounding areas.

Myth #2: “Your Down Payment Has to Come Entirely From Savings”

Many buyers assume they need years and years of personal savings before purchasing a home. In reality, there are often multiple sources that can contribute toward a down payment.

Depending on the loan program and lender requirements, buyers may be able to use:

• Monetary gifts from family
• Down payment assistance programs
• Grants or employer-sponsored assistance programs
• Other approved financial sources

For buyers searching for new homes in Saline, Dexter, or Jackson, this flexibility can make homeownership much more achievable than expected.

Myth #3: “Down Payment Assistance Is Only for First-Time Buyers”

Another common misunderstanding is that assistance programs are reserved exclusively for first-time homebuyers. While some programs do target first-time buyers, many others are based on factors like income, location, profession, or financing type; not whether you’ve owned a home before.

That means even buyers who currently own a home or have purchased in the past may still qualify for certain programs. This is why working with knowledgeable professionals matters. The financing landscape changes regularly, and buyers are often surprised by what they may qualify for once they speak with a lender.

Myth #4: “I Should Wait Until I’ve Saved ‘Enough’”

This one is understandable, but it can also become an endless moving target. Many buyers continue renting while trying to save more, hoping prices or rates will improve significantly. But while waiting, home prices may continue rising, interest rates can fluctuate, and rental payments continue building someone else’s equity instead of your own.

There are also other costs involved in purchasing a home beyond just the down payment, including closing costs, inspections, and moving expenses. Trying to save for every possible scenario at once can make buying feel impossible.

At Norfolk Homes, we encourage buyers to focus less on reaching a “perfect” number and more on understanding what’s realistically possible today. Often, buyers are closer to purchasing a new home near Ann Arbor than they initially thought.

Myth #5: “Buying a Home Is Too Complicated Right Now”

The housing market has certainly created a lot of noise over the past few years. But complexity becomes much more manageable when buyers have the right guidance. That’s why we focus so heavily on education and communication throughout the process. Whether you’re considering a quick move-in home in Jackson, building a new home in Saline, or exploring new construction homes in Ann Arbor, our goal is to help you feel informed; not overwhelmed.

We help buyers understand timelines, financing conversations, next steps, and what to expect at every stage.

The Right Information Changes Everything

At Norfolk Homes, we believe many buyers aren’t truly being held back by the market; they’re being held back by myths about the market. The reality is that homeownership may be more attainable than you think, especially when you have experienced professionals helping guide the process.

If you’ve been considering a new home in Ann Arbor, Jackson, Saline, Dexter, or the surrounding Southeast Michigan area, now may be the perfect time to start the conversation. You don’t need all the answers before reaching out, you just need a trusted team willing to help you explore your options with confidence. For any questions or inquiries about our new homes for sale in Ann Arbor and surrounding areas, give us a call at (734) 336-1912 or fill out our online form today!