Down Payment Myths Every Bucks County Buyer Needs to Stop Believing

By Connor Linn | Real Estate Agent & Retired Mortgage Loan Officer

If I had to name one reason buyers hesitate, delay, or talk themselves out of homeownership in Bucks County, it’s this: down payment confusion.

A lot of buyers walk into their search believing they’re years away because they don’t have “enough” saved. Others assume they need to wait until they hit a perfect financial milestone. Most of the time, they’re basing those assumptions on outdated advice.

As a Bucks County real estate agent with a mortgage lending background, I’ve worked with all kinds of buyers from first-timers, move-up families, downsizers, and people who thought they had zero options.

Here are the biggest down payment myths I hear every week, and what the reality looks like in 2025.

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

This is the most common myth, and it’s simply not true.

Yes, putting 20% down can eliminate mortgage insurance and reduce your payment. But it is not required for most buyers.

In 2025, common down payment options include:

• Conventional loans: as low as 3% down

• FHA loans: 3.5% down

• VA loans: 0% down (for eligible buyers)

• USDA loans: 0% down (in qualifying areas)

Plenty of Bucks County buyers purchase homes successfully with 3–5% down. The key is understanding your comfort payment, your loan options, and your larger financial plan.

Myth #2: If You Put Less Than 20% Down, You’re Making a Bad Financial Move

Putting 3–10% down isn’t “bad.” It’s a strategy and sometimes the smartest one.

Here’s why:

• Home prices rise over time in strong counties like Bucks

• Waiting to save 20% can cost you years of equity

• You may end up paying more for the home later

• You keep cash available for life and emergencies

I’d rather see a buyer purchase a home that fits their budget today with 5% down than wait three years, lose market opportunities, and keep renting.

The right move depends on your goals, not a blanket number.

Myth #3: Your Down Payment Is the Only Upfront Cost

Down payment is not the only cash you need at closing.

Buyers should also plan for:

• Closing costs (typically 2–4% of purchase price)

• Prepaid taxes and insurance

• Appraisal and inspection

• Moving expenses

• Initial home setup (paint, furniture, small fixes)

This is why I help buyers build a full “cash roadmap” before they even start serious touring.

When you know both your down payment and your closing costs ahead of time, your buying process becomes simple and predictable.

Myth #4: Closing Costs Are Always Separate From the Down Payment

Sometimes they are. Sometimes they don’t have to be.

In certain situations, buyers can:

• Negotiate seller concessions

• Use lender credits

• Roll parts of closing costs into the deal

• Combine assistance programs with their down payment

This depends on the home, the market, your loan type, and your strategy.

Many first-time buyers assume they need both a full down payment and full closing costs in cash. In reality, we can structure deals to make the upfront burden more manageable.

Myth #5: “Low Down Payment” Means a High Monthly Payment

Not necessarily.

Your monthly payment depends on multiple factors:

• Interest rate

• Taxes (huge in Bucks County)

• Insurance

• HOA fees

• Loan type

• Purchase price

• PMI (if applicable)

I often see buyers focus too much on down payment and not enough on the full payment breakdown. For example:

A buyer with 5% down on the right home might have a lower monthly cost than a buyer with 15% down on a higher-tax property.

This is exactly why I run payment comparisons by township and neighborhood.

Myth #6: PMI Is Always Terrible

PMI (private mortgage insurance) gets a bad reputation, but it’s not a deal-breaker.

Think of PMI as a temporary bridge:

• It allows you to buy earlier

• It lets you build equity sooner

• It goes away once you hit enough equity

For many Bucks County homes, PMI may be:

• $60/month

• $110/month

• $160/month

When compared to the cost of renting or waiting, PMI is often worth it.

The key is making sure the total payment fits your comfort range.

Myth #7: Down Payment Assistance Is Too Complicated or Rare

Down payment assistance programs do exist, and they can be very real options in Bucks County.

They vary by:

• Income level

• Loan type

• Property type

• Buyer status (first-time, repeat, etc.)

• Zip code

Some programs offer grants, others offer low-interest second loans, and some are paired with FHA or conventional loans.

Not every buyer qualifies, but it’s always worth checking. I help buyers explore these programs early so they don’t miss opportunities.

Myth #8: You Should Use Every Dollar You Have for the Down Payment

This is a big one.

I’ve seen buyers drain their savings to put more down, then feel stressed once they move in because they have nothing left for life or emergencies.

A healthy approach is:

• Put down what helps your payment stay comfortable

• Keep an emergency fund

• Leave room for move-in expenses

• Avoid becoming house-poor

The goal isn’t to put the maximum down. The goal is to buy a home you can live in comfortably long-term.

Myth #9: Manufactured Homes Don’t Have Real Down Payment Options

This myth is especially common.

Manufactured homes can be financed in different ways depending on the situation:

• If you own the land, traditional mortgage options may apply

• In land-lease communities, chattel loans are common

• Some lenders offer very competitive terms

• Down payments can be manageable, especially compared to traditional homes

A buyer who thinks they need a massive down payment may find a manufactured home gives them a realistic path to ownership much sooner.

This is one of the reasons I specialize in both markets, from mansions to mobile homes!

What Bucks County Buyers Should Do Instead

Here’s my recommended approach if you’re unsure about down payment strategies:

1. Start with your comfort payment

2. Pick the loan type that fits your life

3. Estimate full cash needed (down payment + closing costs)

4. Compare neighborhoods by payment, not price

5. Keep a healthy emergency fund after closing

6. Move when the math works, not when myths say you should

Buying in Bucks County is absolutely possible in 2025, but only if you’re working from real numbers.

Final Thoughts

Down payment myths keep good buyers on the sidelines. The truth is: most people have more options than they realize.

Whether you are buying your first home, moving up, or exploring affordability alternatives in Bucks County, I’ll help you:

• Understand your real down payment options

• Build a full cash roadmap

• Compare payment scenarios

• Buy confidently without surprises

If you want a personalized breakdown based on your goals and budget, reach out anytime I’ll walk you through it step-by-step.

-Connor