There are six primary myths when it comes to home buying that many renters still believe, but knowing the facts could inform renters that their road to homeownership may be shorter than they believe. For starters, the myth that might keep most renters away from buying, is the myth of needing a 20% down payment. Redfin says in many cases, a down payment could be as low as 3.5%, depending on the type of loan and the type of buyer. Low to no down payment loan options include FHA, VA, and USDA. FHA loans are designed for those with low to moderate income levels and credit scores.
MYTH 2: Renting is cheaper than buying a home
One of the most common home buying myths is that renting is cheaper than buying a home. If you’re deciding whether to make the transition from renter to buyer, you might believe that renting is the less expensive option. However, in some cities the cost of renting a home may be less than or equal to a monthly mortgage payment.
If you’re serious about buying a home, you may end up saving money in the long run if you buy a house rather than continue renting. To compare the costs of renting versus buying a home, you can use a rent vs buy calculator to determine which option works best for your circumstances.
MYTH 3: Your credit score needs to be perfect
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