Busting Homebuying Myths: What You Really Need to Know

Buying a home is one of the biggest decisions you'll ever make—and with that comes a lot of well-meaning advice… and even more misinformation. From “you need 20% down” to “you can’t buy with student loans,” homebuying myths can make the process feel overwhelming before it even starts. At American Legend Homes, we believe knowledge is empowering. That’s why we’re here to bust some of the most common homebuying myths and help you approach your home search with confidence. Here are a few common homebuying myths—debunked.

Myth #1: You Need a 20% Down Payment

Fact: While putting 20% down can help you avoid private mortgage insurance (PMI), it’s far from a requirement. Many loan programs, including FHA and conventional loans, allow for much smaller down payments—as low as 3–5%. Talk to a lender to see what options fit your situation.

Myth #2: You Can’t Buy a Home If You Have Student Loans

Fact: Having student loans doesn’t disqualify you from buying a home. What lenders care about most is your debt-to-income ratio (DTI), not just the presence of student loans. If your income comfortably supports your current debts and a mortgage, you may be good to go.

Myth #3: Renting Is Always Cheaper Than Buying

Fact: Rent prices are on the rise, and every payment goes toward your landlord’s investment—not yours. With a mortgage, your payments help build equity, and you have the freedom to personalize your space. Long-term, homeownership can often be the more affordable choice.

Myth #4: You Should Wait for the “Perfect” Market

Fact: Trying to time the market is nearly impossible. Interest rates, home prices, and inventory levels are always fluctuating. The best time to buy a home is when it makes sense for your life—when you're financially prepared and ready for the responsibility.

Myth #5: New Construction Is More Expensive Than Resale

Fact: While the upfront cost of new construction can appear higher, it often saves buyers money in the long run. New homes typically come with warranties, energy-efficient features, and fewer immediate repairs, which can add up quickly in an older resale home.

Buying a home doesn’t have to be confusing. With the right guidance—and the right builder—you can navigate the process with clarity and confidence. At American Legend Homes, we’re here to answer your questions, clear up misconceptions, and help you find a home that’s not just a great investment, but a perfect fit for your lifestyle. Let’s build your dream together—no myths, just facts.