Most Dayton renters want to own a home someday—but many believe they need a huge down payment, perfect credit, or years of savings before they can even begin. These myths keep thousands of families stuck renting when they could be building equity, stability, and generational strength in the very same neighborhoods they already call home.
The truth is simple: In Dayton, homeownership is far more accessible than most renters realize. And in 2025, new programs, new tax incentives, and more flexible lending options have made it easier than ever for local families to transition from renting to owning.
In this guide, we break down the biggest down payment myths we hear from Dayton residents—and the truth behind each one—so you can finally see a clear, realistic path to owning a home.
Myth #1: “I need 20% down to buy a home.”
This is the biggest misconception in homeownership—and it stops more renters from applying than any other myth. The idea that you need 20% down has been repeated for decades, but it simply isn’t true, especially in Dayton.
Here’s the reality:
- FHA loans require only 3.5% down.
- VA loans require 0% down for qualifying veterans.
- USDA loans (in certain locations near Dayton) require 0% down.
- Conventional loans may require only 3% down.
On a $120,000 home in Dayton, that means:
- 20% down (the myth): $24,000
- 3.5% down: $4,200
- 3% down: $3,600
- 0% down: $0
Most Dayton homes fall in the $85,000–$140,000 range, which means the actual down payment needed is far smaller than most renters expect.
Myth #2: “I can’t save a down payment while paying rent.”
This is a very real concern. Renters across West Dayton, Northwest Dayton, and Twin Towers are facing higher rents due to rising taxes, insurance increases, and operating costs passed down from landlords. Saving $4,000–$6,000 while paying rent is difficult.
That’s why our program was designed to remove this barrier entirely.
We offer down payment assistance built directly into the purchase.
Because we own the home you’re renting, we can structure the sale so part or all of your down payment is included in the terms of the purchase. This is not a lease-option, land contract, or rent-to-own trick. This is a standard sale with ethical, transparent terms that help renters transition into ownership without needing large savings.
This alone eliminates the biggest obstacle holding Dayton families back.
Special Opportunity: Dayton’s $10,000 Homebuyer Grant
As of 2025, the City of Dayton is offering an incredible incentive for first-time buyers: a $10,000 grant for families purchasing single-family homes inside city limits. This is not a loan and does not need to be repaid. It is truly free money designed to help Dayton residents become homeowners.
This program was created to strengthen neighborhoods, stabilize families, and encourage long-term homeownership throughout West Dayton, Northwest Dayton, Twin Towers, Old North Dayton, Five Oaks, and Wright-Dunbar. For many renters, this grant completely eliminates the biggest hurdle to owning a home: the down payment.
Even better, this $10,000 grant can often be combined with other programs, including:
- FHA down payment assistance programs
- Ohio Housing Finance Agency (OHFA) grants
- Neighborhood Stabilization and revitalization programs
- Employer-assisted housing incentives
- Our own down payment assistance built into the purchase
There has never been a time in recent history where Dayton offered this much support for local renters wanting to transition into homeownership.
A Team Watching Every Local Grant and Program For You
Many renters feel overwhelmed trying to figure out which programs they qualify for or which grants are still active. The rules change constantly, programs open and close, and the details can be confusing without someone who follows them daily.
That’s why our lending partner at Texana Bank has a dedicated team that stays on top of every available homebuyer program in Dayton and Montgomery County. Their only job is to monitor:
- City grant programs (like Dayton’s $10,000 grant)
- State-level assistance programs
- Federal incentives for first-time buyers
- Neighborhood-specific revitalization programs
- Newly created grants or pilot initiatives
Instead of trying to interpret dozens of programs on your own, our team simply tells you:
- Which programs you qualify for
- How much free assistance is available
- How to combine multiple programs
- How much you’ll need out-of-pocket (often very little or none)
Dayton renters rarely realize how much assistance is already available to them. When you combine city grants, state incentives, and our down payment assistance, many families discover they have access to thousands of dollars they never knew existed.
This is why we always say: You’re closer to homeownership than you think. You just need the right team guiding you through the process.
Myth #3: “My credit isn’t good enough to qualify.”
Many Dayton renters assume they need perfect credit to buy a home. That belief keeps thousands of families from even checking where they stand. The truth is that most first-time homebuyers—especially in our city—do not have perfect or even “very good” credit.
It’s common to see buyers qualify with:
- medical collections
- old utility bills
- late payments from years ago
- accounts in dispute
- scores in the high 500s or low 600s
You may be much closer than you think.
Soft Credit Pull — No Impact to Your Score
Our lending partner, Lance Tearnan of Texana Bank, starts with a soft credit check. It does not show up on your report and does not affect your credit score. It simply gives us a clear picture of where you stand today.
From there, we create a step-by-step improvement plan based on your real situation—not fear, rumors, or assumptions.
Plus: Your rent is already helping your credit.
Proper Management includes a positive-only credit reporting feature inside our Resident Benefits Package. Every month you pay rent on time, a positive payment is reported to the credit bureaus. This is one of the fastest and most predictable ways to strengthen a credit profile.
Most renters never receive credit for their largest monthly payment—our residents do.
Myth #4: “If something breaks, I can’t afford repairs.”
This is a legitimate fear, especially for families who have never owned a home. But the belief that repairs are constant, expensive, and unmanageable is largely exaggerated. Most single-family homes in Dayton need predictable, manageable maintenance—not catastrophic repairs.
Here’s what most new homeowners experience:
- small repairs of $75–$150
- infrequent larger repairs that can be budgeted for
- no surprise rent increases
- a home warranty option if desired
Compared to the instability of renting—where repairs still happen, but you also face rent hikes and no long-term stability—many homeowners find that maintaining their own home is empowering and financially predictable.
Myth #5: “Homes in Dayton are too expensive now.”
Nearly all of Dayton’s appreciation over the past decade has been from recovering from the deep undervaluation created after 2008. Even today, Dayton remains one of the most affordable housing markets in the entire Midwest.
In neighborhoods like Westwood, Residence Park, Hillcrest, and Old North Dayton, it is still common to find:
- Move-in-ready homes for $95,000–$130,000
- Mortgages under $1,000/month
- Payments that are lower than local rents
When combined with Ohio’s new 15% homeowner property tax credit and our down payment assistance, the cost of buying becomes the same or cheaper than renting in many Dayton neighborhoods.
The Truth: Dayton Renters Are Closer to Ownership Than They Realize
When we break down the real barriers, this becomes clear:
- You don’t need 20% down.
- You don’t need perfect credit.
- You don’t need thousands in savings.
- You don’t need to navigate the process alone.
- You don’t need to fear hidden fees or predatory contracts.
You simply need a clear path—and a team that works with you instead of against you.
Myth #6: “Buying a home is too complicated for me.”
Many Dayton renters believe the homebuying process is confusing or overwhelming. This belief usually comes from past experiences where nobody explained the process, or from watching friends and family struggle through it without proper guidance.
The truth is that buying a home is a step-by-step process, and once you understand each step, it becomes far less intimidating. Most renters who tell us they feel overwhelmed are relieved when they see how straightforward the journey actually is.
Here’s what the simplified timeline looks like:
- Soft credit check — No impact to your score, no cost.
- Affordability review — Understand how much home you can buy today.
- Down payment plan — Determine whether you qualify for built-in assistance.
- Choose your home — Often the one you’re already renting.
- Finalize loan approval — Work with our lender to get a final green light.
- Closing — Sign final documents, get your keys, and become a homeowner.
Most of the “complexity” comes from misinformation or from renters trying to navigate this alone. When you have a team explaining each step, answering questions, and handling the administrative work, it becomes much simpler and far less stressful than you’d expect.
You don’t need to be an expert. You just need a team that has your back, every step of the way.
Myth #7: “I should wait until the market gets better.”
This is another myth that stops many renters in Dayton from taking action. Some believe the market will crash, prices will drop, or interest rates will fall dramatically in the near future. But waiting often has the opposite effect.
Here’s the reality for Dayton specifically:
- Home prices in Dayton are still far below national averages and have only recently corrected from years of undervaluation.
- Demand for single-family homes is rising as more out-of-state buyers and investors move into the area.
- Interest rates may not drop significantly anytime soon—and even if they do, home prices typically rise when rates fall.
- Ohio’s property tax changes make renting more expensive each year you wait.
Simply put: the Dayton housing market is one of the most stable, affordable markets in the Midwest. Waiting doesn’t reduce your costs—it usually increases them. Every year you rent, you’re paying someone else’s mortgage and helping someone else build equity.
The best time to start your homeownership journey is when you are financially ready—not when someone on TV says the market is perfect.
Why Dayton Is One of the Easiest Cities in America to Become a Homeowner – Despite Down Payment Myths
Dayton is in a unique position compared to other metropolitan areas. In cities like Columbus, Cincinnati, Indianapolis, Nashville, and Charlotte, rents have skyrocketed and home prices have surged far beyond what average families can afford. Dayton, however, still maintains:
- Affordable home prices — often under $140,000.
- Below-average property taxes compared to nearby counties.
- A large supply of single-family homes suitable for first-time buyers.
- Lower cost of living than most U.S. cities.
- Access to down payment assistance through programs like our own built-in option.
And unlike many markets where starter homes have disappeared, Dayton still has neighborhoods where everyday working families can realistically enter the market without being priced out.
Areas like Westwood, Residence Park, Hillcrest, Wright-Dunbar, Old North Dayton, and Twin Towers offer a rare combination: affordable homes, stable communities, and strong long-term appreciation potential.
As rents continue rising due to tax and insurance increases, Dayton remains one of the only cities where buying is still often cheaper than renting. That makes it one of the best places for renters seeking long-term stability, equity, and financial freedom.
The Emotional Side: Homeownership Is About More Than Money
While the financial benefits of homeownership are clear—equity, stability, tax savings, and lower long-term costs—there is also a powerful emotional advantage. For many families in Dayton, owning a home represents:
- Stability — No landlord can decide your future.
- Pride — A place that is truly yours.
- Legacy — Something you can pass on to your children.
- Community roots — The feeling of belonging to a neighborhood.
- Freedom — Paint the walls, get a dog, plant a garden.
For many renters we work with, the moment they receive their keys is life-changing. For the first time, they feel in control. They no longer fear rent increases or losing their home because someone else decided to sell.
And your program makes that moment possible for families who never thought they’d get there.
Here’s How to See Exactly Where You Stand (Soft Credit Pull)
Our process begins with a safe, no-risk soft credit check from our lending partner. It doesn’t affect your score, doesn’t obligate you to anything, and gives you a real picture of your buying power.
This is the fastest, safest first step toward owning your home.
Start Your Free Pre-Approval Check
Want to See Homes You Could Buy?
View the homes available through Dayton Proper and see what’s possible. Many are available to rent today and buy whenever you’re ready.