Posted by The Kombrink Team on Monday, March 3rd, 2025 10:20am.
Think you need a 20% down payment to buy a home? Or that your credit score has to be flawless? Think again! These long-standing home-buying myths are stopping many potential homeowners in their tracks. In reality, buying a home is often easier and more attainable than most people realize.
If you’ve been holding off on purchasing a home because of these misconceptions, it’s time to separate fact from fiction. In this article, we’ll bust the biggest home-buying myths so you can make informed decisions about homeownership.
Let’s dive in!
One of the most common misconceptions about buying a home is that you must put down 20% of the home’s purchase price. While a 20% down payment is ideal, it’s not a requirement for most buyers.
Many homebuyers, especially first-timers, get into a home with as little as 3% to 5% down. Government-backed loans, such as FHA loans, VA loans, and USDA loans, allow lower down payments, sometimes even zero!
While it’s great to avoid private mortgage insurance (PMI) by putting 20% down, waiting to save up that amount could cost you in other ways:
If a large down payment is your only roadblock, explore your loan options and assistance programs—you might already qualify for homeownership!
A perfect 800+ credit score might help you secure the best interest rates, but it’s not a necessity for buying a home.
Many loan programs accept buyers with credit scores as low as 580—or even lower in some cases!
Yes! A better credit score means a lower interest rate, which can save you thousands over the life of your loan. However, waiting to boost your score could mean missing out on today’s market conditions.
If your credit isn’t perfect, don’t panic—lenders consider more than just your score, including your income, debt-to-income ratio, and payment history.
It’s often said that "buying a home is always a smarter financial decision than renting." While homeownership can build long-term wealth, it isn’t always the best option for everyone.
Renting makes sense in certain situations, such as:
While buying is often a great investment, it’s only worth it when you’re financially ready and plan to stay in the home long enough to build equity.
Adjustable-rate mortgages (ARMs) often get a bad rap, but they can actually be a smart choice in the right circumstances.
An ARM offers a low fixed rate for a set number of years (typically 5, 7, or 10 years), after which the rate adjusts based on market conditions.
When does an ARM make sense?
For instance, if a 30-year fixed mortgage is at 7%, but a 5-year ARM starts at 5%, you could save $300 per month on a $300,000 home—that’s $18,000 over 5 years!
The key is understanding your long-term plans. If you don’t expect to stay in the home for decades, an ARM could save you money!
With so many online home search tools, do you really need a real estate agent?
While you can find homes online, buying one is a complex process that involves:
And the best part? The seller typically pays the Realtor’s commission, so you get expert representation at no extra cost!
A great real estate agent will save you time, money, and stress—helping you find the right home while avoiding pitfalls along the way.
If you’ve been holding off on buying a home because of these myths, it’s time to reconsider! Many buyers qualify for homeownership sooner than they think, thanks to lower down payment options, flexible credit requirements, and expert guidance from real estate professionals.
Before you let outdated myths stop you, reach out to a trusted mortgage lender or real estate agent to explore your options. You may be closer to owning your dream home than you realize!
Do I need a 20% down payment to avoid private mortgage insurance (PMI)?
Not necessarily! Some lenders allow no-PMI options with a lower down payment, especially if you have good credit.
What’s the lowest credit score I can have to buy a home?
It depends on the loan type. FHA loans accept 580+, and VA loans may have no minimum.
How much should I save for closing costs?
Closing costs typically range from 2% to 5% of the home price, covering lender fees, title insurance, and escrow costs.
Is renting ever better than buying?
Yes! Renting can be smarter if you plan to move soon, need financial flexibility, or aren’t ready for homeownership expenses.
Can I buy a house without a Realtor?
You can, but it’s risky. A Realtor helps negotiate, spot red flags, and guide you through paperwork—often at no cost to buyers!
Still have questions? Drop a comment below, and we’ll answer them personally! If you’re ready to make a move, send us a message—we’d love to help!