Six Common Homebuying Myths Debunked

In this article, we’ll bust six of the most common homebuying myths, as well as take a deeper look at the many benefits of homeownership. Whether you’re a first-time buyer or you’re looking to upgrade, it’s time to shed some light on the realities of buying a home and uncover the true advantages of owning your own property.

Myth #1: You need an 850 credit score to get approved for a loan

Fact: Contrary to what some may believe, you do not need a perfect 850 credit score to qualify for a mortgage. While it’s true that a higher score may help you secure a lower interest rate or better loan terms, it’s certainly not the end-all be-all for loan approval. The minimum credit score requirements vary depending on the type of loan you apply for and how large of a down payment you make. A government-backed FHA loan, for instance, often has lower score requirements than a Conventional loan, which typically requires a minimum FICO score of 620. Regardless of which loan type you apply for, it’s always a good idea to keep an eye on your credit if you’re in the market for a new home. A higher score may open the door to receiving special offers!

The knowledgeable loan officers at our affiliate lender, HomeAmerican Mortgage Corporation (see licensing info below), can help you explore loan options based on your credit score and work with you on pre-qualifying for a mortgage.

Myth #2: You have to have a 20% down payment

Fact: One of the most persistent myths is that you must put down a hefty 20% of the home’s purchase price in order to buy a home. While it’s true that a 20% down payment may help you avoid having to pay private mortgage insurance (PMI), it’s not always a requirement. There are a number of loan programs available that allow for significantly smaller down payments. Just as with the credit score qualifications, requirements for a down payment differ based on the mortgage type and your financial situation.

FHA loans, for example, require as little as 3.5% down, making them an attractive option for first-time buyers who may not have the funds for a large down payment. Conventional mortgages also offer options with smaller down payments, sometimes as low as 5%. If you qualify for a VA loan (for veterans or active military members) or a USDA loan (for buyers in eligible rural areas), you may even be able to buy a home with no down payment at all.

Myth #3: Single people or single-income families can’t afford to buy a home

Fact: One of the more outdated myths is the idea that single individuals or households with only one income can’t afford to purchase a home. According to the 2024 Home Buyers and Sellers Generational Trends Report from the National Association of REALTORS® (NAR), 19% of U.S. homebuyers in 2024 were single females and 10% were single males. Generally, homebuying is more affordable and attainable for dual-income households, but that doesn’t rule out affordability for single-income households.

While it may have been more challenging for single buyers in the past, today’s market offers a variety of options that make homeownership a realistic goal for individuals on one income. First-time buyer incentives, lower down payment requirements, special financing offers and more affordable floor plans (such as our Seasons™ and Urban Collection™ homes) may make it easier for single buyers to make the purchase. These individuals can (and should!) enjoy the numerous benefits of homeownership.

Myth #4: Your first home should also be your “forever” home

Fact: Many first-time buyers get caught up in the idea that their first home must check every single box on their wish list and be the place they’ll live for the rest of their lives. While it’s natural to dream of finding the perfect home, the truth is that most people end up owning more than one home over the course of their lives. There’s no tried and true rule regarding how long you should stay in a home before selling, but it’s important to remember that there are many factors or circumstances that could lead you to put your house on the market.

You may purchase a home based on your current needs, only to find that you require more space to accommodate a growing family. Or, perhaps you’ve bought your dream home in one area, only to be offered a job in a different city. Whether the reasons are related to finances, work, family or simply needing a fresh start, you’ll likely end up owning multiple homes over the course of your lifetime, each one better suited than the last to meet your evolving lifestyle.

Myth #5: Renting is always cheaper than buying

Fact: One of the most common misconceptions is that renting is always cheaper than buying a home. While it’s true that purchasing a home often involves larger upfront costs—such as a down payment, closing costs and other fees—monthly rent payments can sometimes be just as high as or even higher than monthly mortgage payments. This can be particularly true in areas where rent prices have risen significantly in recent years. Additionally, interest rates can impact the affordability of your mortgage payments. If you secure a favorable rate, your monthly payments could be lower than you expect. Many first-time buyers also qualify for programs that can potentially make homeownership more affordable than renting.

It’s important to remember that buying a home isn’t just about the initial costs—it’s also an investment in your future. As you make payments toward your mortgage, you can build equity in your home, especially if the value of the property increases. Renting, on the other hand, doesn’t offer this long-term financial benefit. As a renter, you may be helping your landlord build equity and pay off their mortgage.

Myth #6: Financial advantages are the only benefits of homeownership

Fact: It’s true that potential tax deductions, price appreciation and equity building are strong incentives for purchasing a house, but they aren’t the only advantages! There are also significant non-financial benefits of homeownership, ones which focus more on the emotional side of buying. For many people, owning a home brings a sense of stability and security. Unlike renting, where landlords can raise rent or choose not to renew leases, homeownership provides a level of control over your living situation. This stability can be particularly important for families or individuals who are looking for a permanent place to settle down.

Purchasing a house also allows you to have more control over your space—you can decorate, remodel and personalize as you please, without worrying about someone else’s rules and restrictions. Additionally, homeownership can offer feelings of personal pride, fulfillment and accomplishment, as well as a sense of belonging as you develop ties with your community. Whether it’s getting to know your neighbors, joining local groups, exploring the area or simply enjoying a quiet evening in your own home, the non-financial benefits of homeownership can significantly improve your quality of life.

In conclusion…

It’s easy to get caught up in misconceptions surrounding homebuying, but now that we’ve debunked some of the most common myths, we hope you can move forward in your journey with a clearer understanding of what to expect. From the ability to purchase with a lower credit score or down payment to the emotional and lifestyle benefits of owning your own home, the realities of homeownership may be much more attainable than you think.

The benefits of homeownership go far beyond just financial considerations. While equity building, tax incentives and long-term financial security are important, there are many other advantages, such as stability, control over your space and the emotional fulfillment of owning your own property. So, whether you’re buying your first house or upgrading to a new one, don’t let these myths hold you back from your dream home.

If you’re ready to experience the benefits of homeownership for yourself, now’s the time to take those first steps. Start Smart by browsing our resources and exploring available quick move-in homes.

For more personalized assistance, reach out to a local New Home Specialist online or by calling 888.799.8322 . They can help narrow down you narrow down your wish list, find your perfect neighborhood fit and book home tours.