The 5 Biggest Myths About Homeownership

A lot of buyers are sitting on the fence today — not because they aren’t ready, but because they’re relying on outdated information or advice that doesn’t match how modern lending actually works. Carl White calls these “dream blockers” because they stop families from taking steps that could meaningfully improve their financial future. Dave Savage puts it another way: “Confidence starts with the right information.”

And that’s exactly what this week’s blog is about. When you replace myths with the truth, the path to homeownership becomes simpler, more predictable, and often much closer than people realize.

The 5 Most Common Homeownership Myths

Myth 1: “You need 20% down.”

This is one of the biggest misconceptions in the market. While putting 20% down can help avoid mortgage insurance, it is not a requirement. Most first-time buyers purchase with 3%–5% down, and some programs allow even less. Qualified veterans can buy with 0% down through VA loans. Waiting to save 20% often delays homeownership by years — and during that time, home prices and rents typically rise.

Myth 2: “You need perfect credit.”

Another major roadblock for buyers is believing they must have flawless credit to qualify. The truth? Many loan programs are specifically designed to help buyers who are building or rebuilding credit. A strong credit profile helps, but you don’t need perfection — you need a plan. With the right guidance, buyers can understand what lenders look for and take steps to qualify sooner than expected.

Myth 3: “It’s cheaper to rent right now.”

Rent can feel simpler, especially when you’re unsure about buying. But renting builds zero equity. Every month you pay rent, you’re growing someone else’s wealth instead of your own. Even in markets where rent appears similar to a mortgage payment, homeowners benefit from long-term appreciation, stable payments, and equity growth through amortization. Over time, these advantages create a huge wealth gap between renters and owners.

Myth 4: “I should wait for lower rates.”

No one can predict mortgage rate movements with certainty. Rates rise and fall based on economic conditions, and trying to “time” the market often leads to missed opportunities. Historically, long-term homeowners win regardless of rate cycles because they benefit from appreciation over time. Buyers can always refinance later if rates improve — but they can’t go back and recapture price growth they missed while waiting.

Myth 5: “Buying is too complicated.”

Buying a home is a major milestone, but with the right team, it becomes a smooth, structured, and predictable process. Modern tools, simplified loan programs, and step-by-step guidance make today’s buying experience easier than ever. You don’t have to know everything — you just need someone who does.

Hypothetical Example

A buyer with 5% down and a 660 credit score often assumes they won’t qualify. But with a $375,000 purchase using a common first-time buyer program, they may qualify with manageable monthly payments.

If that home appreciates at 3% over a year (illustrative only), the property could gain around $11,250 in value — not including the additional equity created by paying down the loan through normal monthly payments.

This is how buyers move forward even when they think they’re not ready.

Closing Thoughts

When myths are replaced with clarity, homeownership becomes far more achievable. If you want an educational review of your options — no pressure, no sales pitch — I’m here to walk you through it and help you build a path that supports your long-term goals.