Buying a home is one of the biggest financial decisions most people will ever make—and unfortunately, it’s also one of the most misunderstood. Over the years, I’ve seen great buyers sit on the sidelines because of myths that simply aren’t true.

Let’s clear the air and break down the three biggest myths that stop people from buying a home.

Myth #1: You Need 20% Down to Buy a House

This is 100% false.

While putting 20% down can eliminate private mortgage insurance (PMI), it is not required to buy a home. In fact, many buyers purchase homes every year with far less out of pocket.

There are several loan programs that allow 95% or higher loan-to-value (LTV) financing, and in some cases even 100% financing:

• THDA – Popular for first-time and repeat buyers in Tennessee, often paired with down-payment assistance

• VA Loan – Eligible veterans can buy with $0 down

• FHA Loan – Allows low down payments and flexible credit guidelines

• Local and regional banks – Some offer niche programs, including 100% financing for qualified buyers

Waiting to save 20% can delay homeownership for years—while prices and rents continue to rise.

Myth #2: You Need a Huge Amount of Cash in the Bank to Close

Once again—false.

Do lenders want to see certain fundamentals? Absolutely:

•  Steady income

•  Consistent job history

But do you need tens of thousands of dollars sitting in your bank account just to “prove” you can buy a home? Not really.

Lenders are far more concerned with your ability to repay the loan over time, not whether you’re hoarding cash. Your debt-to-income ratio, income stability, and overall credit profile matter far more than an oversized savings account.

In many cases, buyers are surprised by how manageable the actual cash needed to close can be—especially when assistance programs or seller concessions are involved.

Myth #3: “It’s Not the Right Time to Buy”

This one stops more buyers than anything else.

You’ve seen the graphs.
You’ve watched interest rates and home prices move up—and down—over time.

The better question isn’t “Is it the perfect time?”
It’s “Can I afford to wait?”

Waiting often means:

• Paying higher rent with no equity gained

• Facing higher prices if the market moves up

• Competing with more buyers when conditions improve

For many people, the right time to buy isn’t about timing the market—it’s about having a clear plan that fits their finances and goals.

The Bottom Line

Most buyers don’t need:

• 20% down

• A massive bank balance

• Or a “perfect” market

What they do need is accurate information, realistic expectations, and a strategy built around their situation.

If any of these myths have been holding you back, it may be time to take a closer look at what’s actually possible. The path to homeownership is often far more accessible than people think.