Seven myths keeping you a renter

Most people don't decide not to buy a house. They absorb a handful of "everybody knows" beliefs — usually from people who bought decades ago or never bought at all — and quietly rule themselves out. Let's rule you back in.

Myth #1: "You need 20% down to buy a house."

Conventional loans start at 3% down for first-time buyers, FHA at 3.5%, and VA and USDA loans can be 0% down for eligible buyers. On a $300,000 home, 3% is $9,000 — and Minnesota down payment assistance can cover much or all of it. 20% avoids mortgage insurance, but mortgage insurance is a tool, not a penalty.

Myth #2: "My credit has to be perfect."

Many first-time buyer programs work with scores in the 620s, and FHA can go lower for some buyers. What matters most is the overall picture: income stability, debts, and payment history. A lender can often map out a 60-90 day plan to move a borderline score into range.

Myth #3: "Renting is always cheaper than owning."

Rent buys you a place to live; a mortgage payment buys you a place to live plus equity, a fixed principal-and-interest payment that never gets a renewal increase, and potential appreciation. Sometimes renting genuinely wins — the honest comparison depends on how long you will stay, local prices, and rates. Run the real math, not the vibes.

Myth #4: "I should wait until rates come down."

Nobody can time rates — and if rates fall, buyer competition and prices typically rise. You can buy a home that works at today’s rate and refinance if rates drop later; you cannot go back and buy at today’s price. The right time is when the payment works for your life.

Myth #5: "Student loans mean I can’t qualify."

Student debt is factored in as a monthly payment, not a scary total balance. Millions of buyers qualify with student loans every year. Income-driven repayment plans often produce a low monthly figure for qualifying purposes.

Myth #6: "Pre-qualification is basically the same as pre-approval."

It isn’t, and listing agents know the difference. A pre-qualification is an unverified estimate. A pre-approval means your income, assets, and credit were actually documented and reviewed. In a competitive offer, that difference can decide who gets the house.

Myth #7: "The down payment is the only cash I need."

Plan for closing costs too — commonly around 2-4% of the price — plus a small cushion. But seller credits, lender credits, and assistance programs can offset much of it. Your cash-to-close number is knowable in advance; ask for it before you offer, not after.

You

You

OK, some of these were literally me. Where do I start?

Spencer

A 15-minute conversation. No documents, no commitment — we look at your income, debts, and goals, and I'll tell you honestly whether it's "you can buy now," "here's your 90-day plan," or "let's talk next spring." All three are wins, because all three replace guessing with a plan.

This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Other restrictions and limitations may apply. Program figures reviewed July 2026.