Many Americans believe the dream of homeownership is out of reach, but a recent Bankrate survey revealed that at least some of those frustrations may be due to misconceptions that make homeownership seem harder than it really is. The public opinion poll found that 41% of U.S. adults think now is a “bad time” to buy a home, and 26% say they’ll “never” be able to afford their dream home.

Common Mortgage Myths

The survey identified three common myths about mortgages. The first myth is that a home buyer needs “excellent” credit to get a mortgage. However, it’s possible to land a mortgage with a credit score of less than 700. According to Equifax, a credit score of 800 or higher qualifies as “excellent,” while a score of 620 can qualify for Federal Housing Administration (FHA) loans.

The second myth is that a buyer needs a 20% down payment. While a 20% down payment can help qualify for the best combination of mortgage rate and fees, many people qualify for a mortgage with less than 20% down. FHA loans require just 3.5% down, and VA loans require no down payment.

The third myth is that owning a home is cheaper than renting. However, according to Realtor.com’s March Rental Report, renting is more affordable than buying in all 50 of the largest U.S. metro areas, with an average monthly savings of $920 compared to buying.

Original reporting: Texarkana Gazette — read the source article.