6 Homebuying Myths That Are Holding You Back
6 Homebuying Myths That Are Holding You Back
Myths can spread faster than listings on social media. Homebuyers often come to the table with assumptions that can stall their confidence—or even keep them from starting the process. Here’s a quick-hit guide to busting some of the most common misconceptions.
Myth 1: You need 20% down to buy a home.
Fact: The median down payment for first-time buyers in 2023 was just 8% (National Association of Realtors). FHA loans require as little as 3.5%, and many conventional programs start at 3%.
Myth 2: Mortgage rates always rise in election years.
Fact: Rates are influenced by broader economic forces, not election cycles. In some election years, they’ve risen; in others, they’ve fallen.
Myth 3: You must have perfect credit.
Fact: Conventional loans often start at a 620 credit score, and government-backed loans may go even lower. Good credit helps, but it’s not an all-or-nothing requirement.
Myth 4: Renting is always cheaper than owning.
Fact: While renting may look cheaper month-to-month, homeowners build equity and often stabilize housing costs long-term. According to NAR, homeowners’ net worth is about 40 times higher than renters’.
Myth 5: You can’t buy if you have student loans.
Fact: Lenders consider your debt-to-income ratio, not just whether you have student loans. Many buyers with student debt purchase homes every year.
Myth 6: All loans are the same.
Fact: From FHA to VA to Non-QM options, there’s a product for nearly every situation.
