Two Myths Holding Back Home Buyers

Dated: October 11 2020

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2 Myths Holding Back Home Buyers

Buying a home is a huge commitment and one which should be considered

carefully before undertaking. Not only are you committing to years of the

mortgage, but you are also putting down roots in a community for some period of

time. As more and more Millennials consider the pros and cons of buying their

first home, they are often confronted with a barrage of information containing

half-truths and outright lies. Here are 2 common myths that cause many potential

buyers to hold off buying a home.

Myth #1 – You have to have a 20% down payment.

While it’s true that most 0% down loans have disappeared after the mortgage

meltdown last decade, it’s also true that there are some very attractive loan

options that do not require a 20% down payment. Although loans with less than

an 80% loan-to-value do require private mortgage insurance, which adds cost to

the monthly payment, there are many options available with a lower down

payment; many lenders offer conventional loans with 5-10% down payments, FHA

loans for first time home buyers require only a 3.5% down payment. Qualified

veterans can also use the VA loan program to purchase a home with 0%.

Myth #2 – You need great credit

While it is certainly helpful to have a high FICO score and great credit, there are loan

programs available for buyers will lower scores. In fact, a survey done last fall

indicated that over 50% of new loans in the past year were for people with FICO

scores in the 600-649 range.

The main point is that buying a home is a great investment in your future, both

financially and personally. Before you assume you aren’t ready to buy a home,

talk with a lender, and learn your options. Don’t let these myths keep you from a

new home. 

Blog author image

Susan Banks

Susan Banks Strives for excellence by serving her clients with the utmost care throughout what can be the most stressful times of buying and selling homes. She provides exceptional service by explain....

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