First-Time Homebuyer Myths That Could Be Holding You Back
Buying your first home is a big milestone. But if you’re like many first-time buyers, you’ve probably heard a lot of advice, and not all of it is accurate. In fact, some of the most common myths can actually delay your path to homeownership or cause unnecessary stress. Let’s clear the air and break down 10 popular first-time homebuyer myths that might be holding you back.
- Myth: You Need 20% for a Down Payment
This one just won’t go away, but it’s flat-out wrong for most buyers.
While a 20% down payment can help you avoid private mortgage insurance (PMI), it’s far from a requirement. There are loan options available with down payments as low as 3%—and some programs, like USDA or VA loans, may offer zero down payment options if you qualify. An experienced lender can walk you through what you actually need, which is often far less than what you’ve been told.
2. Myth: There Are No Assistance Programs Available for Someone Like Me
Down payment and closing cost assistance programs aren’t just for specific income brackets or “certain types” of buyers. There are local, state, and even employer-sponsored programs that might be a good fit depending on where you live, your profession, or your financial profile.
Even if you don’t think you’ll qualify, it’s worth checking with a licensed mortgage loan originator. You might be surprised at what’s available to help you move forward faster.
3. Myth: Interest Rates Are Way Too High
Yes, interest rates fluctuate—and they’ve gone up from the historic lows of the past few years. But here’s the thing: people buy homes in all kinds of markets.
Instead of focusing only on the rate, look at your overall monthly payment and how it fits into your budget. You can also refinance down the line if rates drop. Waiting for “the perfect rate” often means missing out on building equity and locking in stable housing costs.
4. Myth: I Have to Have a Perfect Credit Score
A perfect credit score is not a requirement to buy a home. In fact, many lenders work with buyers who have scores in the mid-600s—or even lower in some cases.
Different loan programs have different credit score requirements, and even if your score isn’t where you want it to be, a lender can help you understand your options or give you a plan to improve it. Don’t self-disqualify.
5. Myth: Winter is a Bad Time to Buy
Winter actually has some surprising advantages for first-time buyers. Fewer people are shopping, which can mean less competition and more motivated sellers.
Sure, there might be fewer homes on the market, but the ones that are available may come with negotiable prices, seller concessions, or flexible closing timelines. If you’re ready to buy, don’t wait just because of the season.
6. Myth: You Should Wait Until Home Prices are Lower
Trying to time the market is like trying to predict the stock market—you might get lucky, but you might also miss out.
Home prices tend to rise over time, and waiting often means paying more later. Plus, while you wait, you’re likely still paying rent (and building your landlord’s equity instead of your own). If you’re financially ready, it often makes more sense to buy now and start building wealth sooner.
7. Myth: You Should Find a Home Before You Apply for a Home Loan
This is actually backward.
Getting pre-approved should be one of your first steps. It helps you understand how much home you can afford, makes your offer stronger to sellers, and speeds up the buying process once you find a place you love.
Meeting with a licensed mortgage loan originator early can also help uncover any potential financial issues and give you time to address them.
8. Myth: You Can’t Buy a Home if You’re Self-Employed
Being self-employed doesn’t mean you can’t qualify—it just means the paperwork might look a little different.
Lenders typically want to see two years of consistent income and documentation like tax returns or profit-and-loss statements. If you’ve got a solid track record, there’s no reason being your own boss should keep you from owning a home.
9. Myth: You Can’t Buy a Home If You Have Student Loans
Having student loans doesn’t automatically disqualify you. What matters more is how much you owe compared to your income, also known as your debt-to-income (DTI) ratio.
Lenders take your student loan payments into account when evaluating your application, but many first-time buyers successfully purchase homes while still paying off student debt. Again, it all comes down to your full financial picture—not just one line item.
10. Myth: There is Only One Type of Mortgage Available
Far from it.
There are multiple loan types designed to meet different needs: FHA, VA, USDA, Conventional, and more. Each comes with its own benefits, and choosing the right one depends on your credit, income, down payment, and long-term goals.
A good experienced lender will take the time to match you with the loan program that makes the most sense for your situation—not just stick you with a one-size-fits-all option.
Final Thoughts
There’s no shortage of myths out there that can make first-time homebuyers feel overwhelmed, discouraged, or unsure of where to start. The truth? You probably have more options than you think.
If you’re serious about buying, the best move you can make is to talk to a licensed mortgage loan originator. They’ll help you sort fact from fiction and build a plan that works for you—whether you’re ready to buy now or preparing for the near future.
Your first home is closer than you think. Don’t let these myths keep you on the sidelines.
Ready to buy a home of your own? Our team of Mortgage Experts can help!