Do I Really Need 20% Down? 4 Home Buying Myths That Stop Strategic Buyers in Their Tracks
- Clare R. Okyere
- May 5
- 3 min read
Updated: Jun 11
What today’s savvy buyers need to know about down payments, loan options, and building wealth through real estate—without draining their savings.
If you’ve been waiting to buy a home until you’ve saved 20% down… you’re not alone. It’s one of the biggest myths in real estate — and one of the main reasons buyers sit on the sidelines while wealth-building opportunities pass them by.
At O Capital Group, we specialize in helping strategic buyers navigate today’s market with clarity and confidence. Let’s bust four of the biggest myths keeping would-be buyers stuck.
💸 Myth #1: You need 20% down to buy a home
Truth: That may have been true for your parents — but not today.There are conventional loans available with as little as 3–5% down, and jumbo loans that require as little as 10% (sometimes even less with strong compensating factors). Strategic buyers use these low-down payment options to keep more cash invested elsewhere, build equity over time, and still secure competitive terms.
If you have excellent credit and strong income, you’re likely overqualified for lower down payment options — but missing out on them if you assume 20% is required.
Strategic tip: Use a smaller down payment to preserve liquidity and invest elsewhere.
💼 Myth #2: I won’t qualify unless I have perfect credit or no debt
Truth: Lenders look at the full financial picture — and strategic buyers often do have complex assets, business income, or even student loans.The key factor isn’t perfection — it’s how you manage what you have. Lenders focus on:
DTI (Debt-to-Income Ratio), not just your balance
Income stability, not just your job title
Credit behavior, not just your score
We help our clients navigate complex income, bonus or commission-heavy pay structures, and even self-employed income to find the best loan fit.
🧾 Myth #3: It’s smarter to wait and save more money
Truth: For many, waiting costs more than buying now.
Let’s break it down:
Home values and rents are still rising in most markets
You can start building equity with less money than you think
Inflation reduces the real value of your future down payment
We work with clients to explore creative ways to buy sooner — from using RSUs or bonuses, to tapping gift funds, to low-down payment jumbo options that let you move now and refinance later if rates improve.
📉 Myth #4: We need to sell our current home before we buy the next one
Truth: Not necessarily. Move-up buyers have more options than ever.
Many of our clients are using the equity in their current home to:
Buy before they sell using bridge loans or equity recapture
Convert their current home to a rental and build passive income
Leverage a HELOC or cash-out refi to fund the down payment
The best strategy depends on your goals — but chances are, we can help you move up without disrupting your lifestyle or missing opportunities in this market.
Conclusion: If you're a strategic buyer thinking about your next move, don’t let outdated rules or fear of “bad timing” keep you stuck. The right loan strategy can help you build wealth — even in this market.
🌱 Because Building Wealth Shouldn’t Start With a Wall
Owning a home is still one of the most powerful ways to build wealth — and no one should feel locked out of that opportunity just because the starting line feels too far away.
The right program, the right advisor, and the right plan can make the difference. Let’s find yours.
Want to be a homeowner by 2026? Click here to request your free Buyer’s Guide 👇
💡 Want to see what you qualify for—or how to move strategically in this market?
📞 (602) 492-8930 to schedule your complimentary 1:1 strategy session or CLICK HERE to explore your options.
At O Capital Group, we make home loans easy!
We love learning from your journey! Leave us a comment below.
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This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
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