10 homebuying myths, busted

The 20% figure is only the point where conventional loans drop mortgage insurance — it was never the entry price. First-time buyer conventional loans start at 3% down, FHA at 3.5%, and VA/USDA can be 0% for those who qualify. Minnesota Housing then layers downpayment loans on top. On a $300,000 home, 3% is $9,000 — and part of that can come from a program, not your savings.

Lenders care about your monthly payment relative to income, not the scary total balance. An income-driven repayment plan with a $150/month payment counts as… $150/month. Plenty of buyers close with five-figure student debt. It's a math problem, not a moral one.

Many MN Housing programs work from a 640 credit score, and FHA can go lower with compensating factors. More importantly, scores are trainable — utilization and payment history respond in months. See the credit playbook.

Owning has real costs renting hides from you — maintenance, taxes, insurance. But rent has a cost nobody puts on the lease: 0% of it comes back. When monthly costs are close, the buyer is building equity and the renter is building the landlord’s. Run both in the rent-vs-buy guide.

People have been waiting for "the crash" since 2014. Timing the housing market is like timing the stock market, except you also have to live somewhere while you wait. The honest strategy: buy when your numbers work — payment, stability, timeline — not when a YouTuber says the top is in.

Self-employed and 1099 buyers qualify constantly — lenders typically look for a two-year income story, not a 40-year pension. Job changes within the same field are usually fine too. The paperwork is heavier, which is exactly why you want a loan officer who preps you early.

Closing costs are real (roughly 2–5% of the loan), but they’re also the most program-covered expense in Minnesota. MN Housing downpayment & closing cost loans, seller-paid credits, and lender credits can offset most of them. This is negotiable money, not a fixed toll.

Qualification is about your income vs. your debts — one strong income can beat two stretched ones. Programs don’t require a plus-one, and single women have been one of the fastest-growing groups of first-time buyers in the country for years.

A mortgage pre-approval is a single hard inquiry — usually a few points, briefly. Credit models also bundle multiple mortgage inquiries within a shopping window and count them as one. Talking to Ashlyn about scenarios requires no pull at all.

There is no window. There’s only your timeline — and Minnesota keeps building programs (like the First-Generation Homebuyer Loan, up to $35,000) precisely because it wants more first-time buyers, whatever their age. Late start ≠ locked out.