There’s a lot of misinformation out there, and it’s keeping many people from achieving their dream of owning a home. In today’s blog we’re going to set the record straight on five major homeownership myths that could be holding you back.
If you’ve ever thought, “I need a 20% down payment,” or “My credit isn’t good enough to qualify for a mortgage,” you’re not alone. These common myths have discouraged countless potential homeowners from taking the first step toward financial stability and personal wealth.
Myth 1: You Need a 20% Down Payment to Buy a Home
One of the biggest misconceptions about buying a home is the belief that you need to put down 20% of the purchase price. While a larger down payment can reduce your monthly mortgage costs and eliminate private mortgage insurance (PMI), it’s not a requirement.
The Truth:
Many loan programs offer significantly lower down payment options, making homeownership more accessible:
- FHA Loans: Require as little as 3.5% down.
- VA Loans: Offer 0% down for eligible veterans and active-duty military members.
- Conventional Loans: Some lenders provide options with as little as 3% down.
So, if you’ve been waiting to save that full 20%, it’s time to explore these flexible options—you might be closer to homeownership than you think!
Myth 2: You Need Perfect Credit to Qualify for a Mortgage
Another common belief is that only people with excellent credit can get approved for a home loan. Many assume that if their score isn’t in the 700s or 800s, they won’t qualify.
The Truth:
While having a higher credit score can help you secure better interest rates, there are loan programs designed for buyers with lower credit scores:
- FHA loans often accept credit scores as low as 580.
- Some lenders may work with scores below 580 if you can make a larger down payment.
If you’re concerned about your credit, start by checking your score and taking steps to improve it—pay down debt, make on-time payments, and avoid new credit inquiries.
Myth 3: Renting Is Always Cheaper Than Owning
Many renters believe that renting is the more affordable option compared to homeownership. While renting may have lower upfront costs, it’s not always the best long-term financial decision.
The Truth:
- When you rent, your monthly payments build your landlord’s wealth, not yours.
- Owning a home allows you to build equity, which increases your net worth over time.
- In many areas, mortgage payments are comparable to or even lower than rent.
If your rent is high, it’s worth exploring whether homeownership could save you money and help you build long-term wealth.
Myth 4: The Homebuying Process Is Too Complicated
It’s true that buying a home involves multiple steps, but that doesn’t mean it has to be overwhelming.
The Truth:
With the right team—a knowledgeable real estate agent, a trusted lender, and other professionals—the process becomes much more manageable. Plus, today’s wealth of online resources makes it easier than ever to educate yourself.
We provide continuous tips and resources to make homeownership easier to understand. Social media and online workshops have made expert knowledge more accessible than ever. You’re not alone in this journey—there’s plenty of support to help you navigate the process.
Myth 5: It’s Not the Right Time to Buy
Many people believe they should wait for the “perfect” time to buy, whether it’s due to interest rates, home prices, or personal savings goals.
The Truth:
The best time to buy a home is when you are financially ready and prepared to take on homeownership responsibilities. Waiting too long could mean missing out on opportunities, especially as home prices and interest rates continue to rise.
If you’re serious about becoming a homeowner, don’t let timing hold you back. Take the first step by exploring your options today. Let’s get on a free planning session together—my link is below so we can develop a strategy to help you become a homeowner this year.
There you have it—five common homeownership myths, debunked! My goal is to empower and inform you so that you can confidently move toward owning your own home.
If you found this article helpful, be sure to like, share, and subscribe to the Keys to Homeownership Newsletter for more homeownership tips and resources. And don’t forget to check out my free resource: The Homeownership Myth-Buster Guide on the Bri Callis Blog. It breaks down everything we discussed today and provides actionable steps to get started.
Sabriyah Callis | NMLS 2537498 | Equal Housing Lender
FTC Disclaimer: This is not a sponsored video or article. All opinions are genuinely my own. This post also contains affiliate links and I earn a small commission if you make a purchase after clicking on my links. It does not cost you any extra. Thank you for your continued support to keep the Bri Callis Blog going!
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