"Myth #1: You need a 20% down payment FHA loans: As low as 3.5% down VA loans: 0% down USDA loans: 0% down Conventional loans: 3 - 5% down, depending on the lender For conventional loans, keep in mind you'll need to factor private mortgage insurance (PMI) into your budget. PMI is an additional cost your mortgage lender may require if your down payment is below 20% and the cost is factored into your monthly mortgage payment."
"Myth #3: You only need to save for a down payment Closing costs: 2 - 5% of the purchase price Agent fees: 1.5 - 3% of the purchase price Sometimes, the seller may cover a portion of the closing costs or the real estate agent's fees, but that's not guaranteed. Be sure to factor these additional costs into your budget."
"Myth #5: Your credit score needs to be perfect Here are some of the credit score guidelines for certain loan types: Conventional loan: 620 FHA loan: 580 (or 500 with 10% down payment) VA loan: No requirement, but some lenders prefer 620 USDA loan: 620 - 640 If your score isn't ideal yet, you can still work with a lender to find the best fit and create a plan to improve it over time."
Down payment requirements vary by loan type: FHA as low as 3.5%, VA and USDA offer 0% down, and conventional loans often require 3–5%. Borrowers with under 20% down typically pay private mortgage insurance (PMI) added to monthly payments. Buyers must budget beyond the down payment for closing costs (2–5% of purchase) and agent fees (1.5–3%). Sellers may sometimes cover portions of these costs. Credit score thresholds differ by loan: conventional ~620, FHA 580 (500 with 10% down), VA often no set minimum, USDA 620–640. Pre-approval is preliminary; continue managing finances until closing. Real estate agents and home inspections provide important protection and local expertise.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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