For many renters, the biggest obstacle to homeownership may not be what they earn or how much they have saved. It may be what they think they need to buy a home.
A recent Neighbors Bank survey of 1,011 renters earning between $40,000 and $125,000 found a significant gap between perception and reality.
According to the survey, 84% of renters overestimated the minimum down payment needed to purchase a home, while 55% believed a 20% down payment was required. The survey also found that many renters overestimated the income and credit score they would need to become homeowners.
Those misconceptions matter because they may cause potential buyers to rule out homeownership before ever exploring their actual options.
You Don't Necessarily Need 20% Down
A 20% down payment can make sense for some buyers, but it isn't a universal requirement.
Depending on the borrower and loan program, financing may be available with considerably less. FHA financing, for example, may allow qualified borrowers to purchase with as little as 3.5% down. Conventional and other specialized programs may provide additional options, and some buyers may also qualify for down payment assistance.
The better question may not be:
"Can I save 20%?"
Instead, ask:
"What would buying a home actually look like for me?"
Don't Let Assumptions Make the Decision for You
The survey uncovered another interesting information gap.
When renters have a homebuying question, 36% said they turn first to Google or a general internet search, while only 6% said they turn first to a mortgage lender or loan officer.
There's certainly nothing wrong with researching online. In fact, education is an important part of preparing to buy a home.
But mortgage qualification is highly individual. Your income, debts, credit, available funds, property taxes, insurance and the home you're considering can all affect what your numbers look like.
That's why general information should be a starting point—not the reason you decide whether homeownership is or isn't possible for you.
Start With Information, Not Assumptions
Buying a home is a major financial decision, and being able to qualify for financing doesn't necessarily mean buying is the right decision today.
Before making that decision, I encourage prospective buyers to understand the complete picture: estimated monthly payment, cash needed to close, financing options, credit considerations and how homeownership fits into their longer-term financial goals.
For those who are financially prepared, homeownership can also provide an opportunity to build equity over time and potentially become an important part of a long-term wealth-building strategy.
But you can't properly evaluate that opportunity if you've already ruled yourself out based on assumptions that may not be accurate.
Before You Decide You're Not Ready, Get the Facts
That's one of the reasons I created my Homebuyer Certainty Center.
It's designed to help you understand the homebuying process before you're asked to make any major decisions. You'll learn about the financial and financing considerations involved in buying a home and the 5 Certainty Checkpoints I use to help buyers navigate the process with greater clarity:
Payment Certainty.
Financing Certainty.
Offer Certainty.
Property Certainty.
Closing Certainty.
Whether you're ready to buy now, six months from now, or you're simply wondering whether homeownership could be part of your future, education is a great place to start.
Before you decide you're not ready, get the facts. Visit my Homebuyer Certainty Center to better understand the process, explore your options and see whether you can begin your own path toward homeownership and long-term wealth building.
Source: Neighbors Bank survey of 1,011 middle-income renters, as reported by Mortgage Professional America, August 14, 2026: “The mortgage myth keeping middle-income renters on the sidelines.”
Tracy Leddy is a Senior Mortgage Consultant with Prosperity Home Mortgage. NMLS #1910668. Equal Housing Lender.
This is for information only and is not a commitment to lend or a loan guarantee. Programs, rates and individual situations vary. Please verify details directly with me.
©2026 Prosperity Home Mortgage, LLC. (877) 275-1762. 3060 Williams Drive, Suite 600, Fairfax, VA 22031. Not all mortgage products are available in all areas. Not all borrowers will qualify. NMLS ID #75164 (For licensing information go to: NMLS Consumer Access at http://www.nmlsconsumeraccess.org/)