Thinking about buying a home in Gainesville but worried about saving for a huge down payment? You’re not alone — and you might be overestimating how much you really need.

Many first-time buyers put off purchasing because of misconceptions about down payments. Let’s separate myth from reality and clear up three of the biggest misunderstandings we hear from local homebuyers.

Myth #1: You need 20% down to buy a home

This is one of the most common myths we hear from buyers. While putting 20% down can help you avoid paying Private Mortgage Insurance (PMI), it’s far from a requirement.

Today’s lenders offer flexible loan programs designed to make homeownership more accessible. Here’s what that can look like:

• Conventional loans: As little as 3% down for qualified buyers.
• FHA loans: Around 3.5% down, ideal for first-time buyers or those with less-than-perfect credit.
• VA loans: 0% down for eligible veterans, active-duty military, and some surviving spouses.
• USDA loans: 0% down for buyers purchasing in eligible rural and suburban areas — and yes, that includes parts of Alachua County and nearby communities like Newberry, Archer, and High Springs.

While putting less than 20% down often means you’ll pay PMI (typically between 0.3–1.5% of the loan), it’s not permanent. Once your home equity reaches 20%, you can request to have it removed.

Myth #2: Your down payment covers everything

Your down payment isn’t the only cost to plan for at closing. You’ll also need to budget for closing costs, which generally range from 2–5% of your home’s purchase price.

These fees cover things like title insurance, escrow, lender fees, and prepaid items such as property taxes and homeowners insurance.

The good news? In Gainesville’s current market, some sellers — or even your lender — may offer closing cost assistance. Your local real estate agent can help you explore those options and connect you with trusted local lenders who offer competitive programs.

Myth #3: You can take out a loan for your down payment

It might sound tempting to take a personal loan or borrow from family to cover your down payment, but that’s not usually allowed. Lenders carefully evaluate your debt-to-income ratio (DTI) — and adding another loan increases your debt load, making you a riskier borrower.

However, there’s a big exception: gift funds.
If a family member or close friend wants to contribute to your down payment, most loan programs allow it — as long as proper documentation is provided. FHA, VA, and conventional loans all permit some or even all of your down payment to be gifted.

Bottom line

Buying a home in Gainesville doesn’t have to feel out of reach. Between low down payment options, local lending programs, and the guidance of an experienced real estate professional, your path to homeownership might be closer than you think.

If you’re curious about what options are available to you, our team at Bosshardt Realty Services can connect you with trusted local lenders and help you take the first step toward owning a home you love