You Don’t Need 20% Down: Maryland Homebuying Myths That Need to Go Away

If you’ve been scrolling through listings in Baltimore County or dreaming about a cozy home in Anne Arundel but stopping short because you “don’t have 20% saved,” here’s some good news: that old rule is one of the biggest Maryland homebuying myths still floating around.

The truth? Most Maryland buyers — especially first-timers — purchase homes with far less. So before you let misinformation delay your dream of homeownership, let’s bust a few myths and look at what’s really possible in today’s market.

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

This is the most common myth — and the one keeping the most people stuck renting. In reality, you can buy a home in Maryland with as little as 3% down, and in some cases, no money down at all.

Here’s the breakdown:

• Conventional loans: As little as 3% down for qualified buyers.

• FHA loans: 3.5% down, often with more flexible credit requirements.

• VA and USDA loans: 0% down for eligible buyers (military veterans, rural area purchases, etc.).

If you’re in areas like Howard County, Harford County, or Carroll County, you may even qualify for local grants or Maryland down payment assistance through programs like the Maryland Mortgage Program (MMP).

In other words, your savings don’t need to equal your purchase price dreams.

🏦 Myth #2: Assistance Programs Are Only for Low-Income Buyers

Another major misconception. Many buyers assume down payment assistance is only for those with limited income, but that’s not the case. Maryland offers multiple first-time homebuyer programs that help a wide range of people — including teachers, nurses, first responders, and even repeat buyers who haven’t owned a home in a few years.

For example:

• The Maryland SmartBuy 3.0 Program can help buyers pay off student loan debt while purchasing a home.

• The Partner Match Program can match funds from participating employers or community organizations.

Each county also has its own incentives. Baltimore City’s “First-Time Homebuyers Incentive Program”, for instance, helps residents buy within city limits, while Anne Arundel County offers closing cost assistance for eligible buyers.

🧾 Myth #3: You Can’t Compete with a Small Down Payment

It’s true that some sellers prefer buyers with larger down payments, but strategy often matters more than size. The right agent can help you write a strong offer by highlighting other factors — like flexible timing, solid pre-approval, and a reputable lender.

In fact, The Teal Clise Group frequently helps Maryland buyers win offers even with minimal down payments. With the right approach, your offer can still stand out in competitive markets like Ellicott City, Towson, or Bel Air.

🏠 Myth #4: Renting is Safer Until You Can Afford More

Renting might feel safer, but it’s often more expensive in the long run. When you rent, 100% of your payment goes toward your landlord’s investment, not yours. Buying — even with a smaller down payment — means you start building equity from day one.

Let’s put it this way: if you can afford monthly rent in Columbia, Catonsville, or Perry Hall, chances are you’re closer to affording a mortgage than you think.

🔑 Myth #5: You Need Perfect Credit to Qualify

Not true. While higher credit scores can unlock better interest rates, many programs accept scores as low as 580 (for FHA loans). Plus, Maryland lenders often work with buyers to improve credit during the pre-approval stage.

Even if your score isn’t where you want it, you don’t have to wait years. The right mortgage professional can help you build a clear path toward qualifying — sooner than you think.

💬 The Bottom Line

You don’t need 20% down. You don’t need a perfect credit score. You just need the right information and the right guidance.

Maryland’s housing market offers real opportunities — from down payment assistance to low-cost loan options — for buyers who know where to look.

If you’re ready to explore your options, The Teal Clise Group can connect you with trusted lenders, explain local incentives, and help you move confidently from “just looking” to “just closed.”

📞 Contact us today to schedule a friendly consultation or learn which Maryland programs you qualify for. Your new home — and new perspective — might be closer than you think.