Top 5 Home Buying Myths

If you only paid attention to housing news headlines, you’d think it was a bad idea to buy a home!

The media loves to report “gloom & doom” stories because it boosts their ratings. Fortunately, a lot of what is presented as fact about buying a home is pure fiction.

Myth #1:
“You need a 20% down payment to get a home loan.”


Truth:

There are many home loan options available that feature very low down payments.

A popular option are loans insured by the Federal Housing Agency (FHA). Because these loans are backed by a government guarantee,  they require only a 3.5% down payment (3.5% of the value of the home you purchase.) FHA loans feature competitive rates that are comparable to “conventional” loans that typically require higher down payments.

Visit one of our Home Loan Consultants today to learn more about the low down payment options available to you at First Federal Bank.


Myth #2:
“There aren’t any down payment assistance programs available.”


Truth:

There are several state and community down payment assistance programs for First Time Homebuyers and we can help you get qualified.  One of the best options for Missouri home buyers is the Down Payment Assistance program from the Missouri Housing Development Commission (MHDC.)

We were recently recognized by the MHDC as a Gold Lender because we helped so many buyers take advantage of this outstanding program! Many local cities also have assistance programs available, so there ARE options for you!

Myth #3:
“You need a perfect credit score to buy a home.”


Truth:

A good credit score helps, but you certainly don’t need an 800+ score to buy a home. In fact, First Time Homebuyers can qualify for the MHDC options mentioned earlier with scores under 700!

Myth #4:
“A home is just not a good investment anymore.”


Truth:

Home values are rising, and a home is still one of a family’s best investments. There have never been more high-quality affordable homes available, so it’s a great time to buy.

Myth #5:
“I can’t afford to buy a home.”


Truth:

Lots of families that are currently renting could easily afford to buy their own home! We can help you identify the price range you can afford and guide you through the home loan process.

Despite all the negative news, there really are resources available to help First Time Buyers and we’re here to help you achieve the dream of home ownership at First Federal Bank!

Contact us to learn more >

Helping customers like you become home owners is our mission at First Federal Bank. Just fill out this brief form to learn more from one of our First-Time Homebuyer specialists:

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