5 Myths About Buying a Home: What You Really Need to Know
Buying a home is a big step, but many potential buyers hesitate due to misinformation. Let’s clear up five common myths about homeownership so you can move forward with confidence.
Myth #1: You Need a 20% Down Payment
This is one of the most widespread misconceptions. While a larger down payment can reduce your monthly mortgage payment, programs like FHA loans allow for as little as 3.5% down, and some VA and USDA loans offer no-down-payment options.
Myth #2: Your Credit Score Has to Be Perfect
A perfect credit score isn’t necessary to qualify for a mortgage. While a higher score can help you secure better rates, many lenders work with individuals who have scores as low as 580, depending on the loan program.
Myth #3: Renting Is Cheaper Than Buying
While renting might seem like the easier option, buying a home builds equity over time. In many markets, monthly mortgage payments are comparable to or even cheaper than rent—especially when you consider the tax benefits of homeownership.
Myth #4: The Home-Buying Process Is Too Complicated
The process might seem overwhelming, but that’s why mortgage brokers like MOD Mortgage exist—to guide you every step of the way. With the right team, buying a home becomes a straightforward process.
Myth #5: You Can’t Buy a Home if You Have Student Loans
Student loans don’t automatically disqualify you from buying a home. Lenders will assess your overall debt-to-income (DTI) ratio, and with the right loan program, you can still qualify.
