(Plus a Few More You Should Know)
By Stress Less Mortgage
When it comes to buying a home, most people aren’t held back by money — they’re held back by misinformation. Outdated advice, social media myths, and stories from 20 years ago can make the mortgage process seem harder than it really is.
The truth?
Homeownership is more achievable than most people think.
Let’s break down the biggest mortgage myths that stop people from moving forward — and replace them with confidence, clarity, and facts.
Myth #1: You Need a 20% Down Payment
This is the myth that refuses to die.
In reality:
✔ Conventional loans can go as low as 3% down
✔ FHA loans start at 3.5% down
✔ VA and USDA loans often require 0% down
✔ Gift funds and down payment assistance are widely available
Saving for 20% keeps people renting far longer than necessary. For many, buying with 3–5% down is smarter and gets them building equity sooner.
Myth #2: Your Credit Must Be Perfect
Nope.
You do not need a perfect score to buy a home.
In fact:
✔ FHA loans allow scores as low as 580
✔ Some lenders have programs for even lower scores with strong compensating factors
✔ Credit can be improved with small, strategic steps — often faster than people expect
Your credit is just one part of the full financial picture. We help break it down and improve it when needed, without judgment.
Myth #3: It’s Better to Wait for Perfect Rates
If we could time the market perfectly, we’d all be billionaires.
Waiting for “perfect” rates often costs buyers more in the long run because:
✔ Home prices continue to rise
✔ Competition increases when rates drop
✔ You can always refinance later
✔ You cannot get yesterday’s home price back
A slightly higher rate today often beats a much higher purchase price tomorrow.
Myth #4: Self-Employed People Can’t Qualify
Self-employed buyers hear this one constantly — and it’s flat-out wrong.
There are powerful programs built specifically for entrepreneurs, gig workers, and 1099 earners:
✔ Bank statement loans
✔ 1099-only loans
✔ Profit & Loss–based programs
✔ DSCR loans for investors
✔ Asset-depletion loans for retirees and high-asset households
If your tax returns don’t tell the full story of your income, that’s okay — we know how to present the real picture.
Myth #5: Pre-Qualification and Pre-Approval Are the Same
They’re not even close.
Pre-qualification = a guess
A quick overview without documentation.
Pre-approval = verified, trusted, respected
This includes reviewing credit, income, assets, and debt.
Sellers in today’s market want pre-approved buyers — not maybes.
Bonus Myths Worth Busting
Myth #6: Student Loans or Car Payments Will Automatically Disqualify You
Not true.
Debt matters, but your overall debt-to-income ratio matters more. Many buyers with student loans qualify without issue — even on income-based repayment.
Myth #7: Retirees Can’t Get a Mortgage
Retirees in places like The Villages buy homes every day using:
✔ Social Security
✔ Pensions
✔ Investments
✔ Asset depletion methods
✔ Retirement withdrawals
Income is income — even if it doesn’t come from a paycheck.
Myth #8: You Need to Fix Everything Before Talking to a Lender
Actually… talking to us first saves time and frustration.
We’ll help you focus on what matters most, not everything that “might” matter.
Why These Myths Matter
Most of these beliefs come from fear, outdated rules, or advice passed from one generation to the next. But today’s mortgage world is more flexible than ever — especially in Central Florida markets like Ocala, Belleview, Lady Lake, and The Villages.
Once people understand the facts, the path to homeownership becomes clearer, simpler, and a whole lot less stressful.
Final Thought
If you’re thinking about buying a home — or even just considering it — don’t let old myths hold you back. A quick conversation can show you what’s actually possible.
Whether you’re a first-time buyer, self-employed, a retiree, or looking to relocate, we’re here to help you move forward with confidence.
At Stress Less Mortgage, we cut through the myths — and help you Stress Less every step of the way.
