Think you need a large down payment and perfect credit to buy a home? Think again.
In 2025, misinformation still keeps too many qualified buyers on the sidelines. Outdated advice, internet rumors, and hearsay from friends or family can lead to hesitation or missed opportunities. The truth is, today’s mortgage industry offers more flexibility and support than many people realize.
Whether you’re a first-time buyer or coming back to the market, it’s time to separate fact from fiction.
Myth 1: You Need a Large Down Payment
Reality: Many buyers qualify for as little as 3% down—or even zero down through VA or USDA loans. Down payment assistance programs can also reduce out-of-pocket costs.
Myth 2: You Must Have a Perfect Credit Score
Reality: You don’t need a perfect score. Some loan programs accept credit scores in the lower range, especially if other financial factors are strong.
Myth 3: Getting Pre-Approved Hurts Your Credit
Reality: A mortgage pre-approval involves a “hard pull,” but the impact is typically small and temporary. Plus, multiple mortgage inquiries within a 45-day window generally count as one for scoring purposes.
Myth 4: Self-Employed Borrowers Can’t Qualify
Reality: Self-employed buyers may have more complex documentation requirements, but there are loan programs designed specifically for them, including bank statement and asset-based loans.
Myth 5: You Can’t Buy If You Have Student Loans
Reality: Having student debt doesn’t automatically disqualify you. Lenders consider your full debt-to-income (DTI) ratio, and many borrowers with loans still qualify for a mortgage.
Pro Tip: The mortgage process has evolved significantly in the past five years. New technologies, expanded loan programs, and evolving underwriting guidelines mean you may qualify for more than you think. The key is to work with a lender who evaluates your full financial picture—not just a single number.
Not sure what’s true and what’s myth? We’ll walk you through the facts, so you can move forward with clarity and confidence.
Contact Sales for a personalized conversation about what’s really possible.
📞 855-LOANWORKS (855.562.6769)
✉️ Sales@LoanWorks.ai
Disclosures: LoanWorks, Inc. is a mortgage broker licensed in multiple states. All information provided on this blog is for general informational purposes only and does not constitute an offer to lend or a commitment to approve any loan. Loan terms, rates, and eligibility are subject to change without notice and may vary based on creditworthiness, property type, and other factors. Not all applicants will qualify.LoanWorks, Inc. does not guarantee approval, rate, or term and does not make any express or implied claims about the availability of specific programs or products.
By refinancing an existing loan, total finance charges may be higher over the life of the loan. Always consult with a licensed LoanWorks representative for details specific to your financial situation.
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