Buying a home is one of the biggest financial decisions you’ll ever make, but there’s a lot of misinformation out there that can make the process seem overwhelming. Many potential buyers hold back because they believe outdated or incorrect information about mortgage requirements. Today, we’re busting three of the most common mortgage myths so you can move forward with confidence!
Myth #1: You Need a 620+ Credit Score to Get a Loan
One of the most common misconceptions is that you need a high credit score—specifically 620 or above—to qualify for a mortgage. While a higher score can help you secure better interest rates, it’s not always a deal-breaker if your score is lower.
✅ Reality: Some loan programs, like FHA loans, allow credit scores as low as 500 with a higher down payment, while VA and USDA loans offer flexible credit requirements. The key is to explore your options with a trusted lender who can help you find the best fit for your financial situation.
Myth #2: You Must Put 20% Down to Buy a Home
The idea that you need to save up 20% of a home’s price before buying is one of the biggest myths in real estate. While putting 20% down can help you avoid private mortgage insurance (PMI), it’s not a requirement to get a home loan.
✅ Reality: Many loan programs allow for much lower down payments:
FHA loans: As little as 3.5% down
Conventional loans: As little as 3-5% down
VA and USDA loans: 0% down for eligible buyers!
If saving 20% feels impossible, don’t worry—there are options available that can help you become a homeowner sooner than you think!
Myth #3: You Must Be in Your Current Job for Two Years
Many people assume they won’t qualify for a mortgage if they’ve recently changed jobs or haven’t been at their current position for at least two years. While employment stability is important, lenders look at the bigger picture when reviewing your income and work history.
✅ Reality: Lenders look at the big picture—your overall job history, income stability, and career progression—not just how long you've been in your current role. If you've changed jobs within the same field or have a strong work history, you may still qualify. Self-employed or a recent graduate? You’re not out of luck! Time spent in college, trade school, or a training program can often count as work history, especially if you’ve transitioned into a job related to your field of study.
The Bottom Line
Don’t let these myths hold you back from homeownership! The truth is, mortgage requirements vary based on loan programs, financial history, and lender guidelines. Working with an experienced mortgage professional can help you navigate the process and find the best loan options for your situation.
If you’re thinking about buying a home, let’s chat! You might be closer to homeownership than you think.
Jonathan Shupe NMLS ID# 1649211 is Manager of Shupe Lending Group NMLS ID# 2478065. Jonathan Shupe and his team of loan officers are licensed in multiple states. Many of the borrowers of Shupe Lending Group are individuals who did not qualify at other lenders due to those lenders overlays on government and conventional loans. We have a reputation of being able to work with over 270 different lenders to be able to offer out clients dozens of non-QM and alternative financing loan programs. Any non-QM mortgage loan program available in the market will be offered by our team at Shupe Lending Group. Our team is available 7 days a week, evenings, weekends, and holidays.
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