5 Common Homebuying Myths—And the Truth Behind Them

Whether you're dreaming of your first home or planning your next move, chances are you've heard plenty of advice—some helpful, some... not so much. At Lucio Real Estate Group, we've helped countless families across California navigate the homebuying journey, and we've seen the same myths trip up buyers time and time again.

Let’s clear the air. Here are 5 of the most common homebuying myths—and the truth behind them:

1. "You need 20% down to buy a home."

The Truth: You don’t need 20% down—and for many buyers, that's great news. While a 20% down payment can help you avoid private mortgage insurance (PMI), there are plenty of loan programs that allow for much less.

First-time buyers, for instance, may qualify for FHA loans with as little as 3.5% down, and some conventional loans allow for 3–5%. There are also VA and USDA loans with 0% down options.

💡 Pro Tip: Down payment assistance programs are available throughout California—ask us about options in your area!

2. "Your credit must be perfect."

The Truth: A less-than-perfect credit score doesn't automatically disqualify you. Lenders look at your entire financial picture—including income, debt-to-income ratio, and savings.

While a higher score can help you get a better rate, many lenders work with buyers who have credit scores in the mid-600s, and FHA loans may be available to those with scores as low as 580.

3. "It’s cheaper to rent than buy.

The Truth: Renting may seem more affordable upfront, but owning builds equity—and in many parts of California, monthly mortgage payments can be comparable to (or even less than) rent.

Owning a home also locks in your housing cost, while rent can keep climbing year after year. Plus, homeowners enjoy tax benefits, appreciation, and the freedom to customize their space.

4. "You should always wait for the market to drop."

The Truth: Timing the market is tricky—even for the pros. While waiting for prices or interest rates to drop sounds smart, it often results in missed opportunities.

When rates drop, buyer demand surges, which can drive home prices back up. If you’re financially ready and plan to stay in your home for several years, the best time to buy is when it makes sense for you.

5. "You can’t buy if you have student loans."

The Truth: Having student loans doesn’t mean you’re out of the running. Lenders look at your debt-to-income ratio (DTI)—how much of your monthly income goes toward debt payments, including student loans.

As long as your DTI is within acceptable limits (usually under 43%), you can still qualify for a mortgage—even with student debt.

Bottom Line

Buying a home is a big step—but it doesn’t have to be overwhelming. At Lucio Real Estate Group, we believe in empowering our clients with facts, not fear. Whether you're just starting to explore your options or you're ready to tour homes, we’re here to help you make confident, informed decisions.

Have questions? Want to chat? Reach out anytime—we’re just a message away.