Myths That Are Getting in the Way of Homeownership
For many, homeownership is central to the American dream—proof that you’ve made it and secured your place in the world.
But in today’s economy, with stagnant wages, high interest rates, and ever-climbing home prices, buying a home often feels like a faraway goal. Especially in competitive markets like Raleigh and Charlotte, it’s easy to feel hopeless about becoming a homeowner.
However, many of the assumptions that hold people back from pursuing a home build or purchase are far from the truth. While there’s no denying that there are costs involved, many of the perceived obstacles to homeownership are closer to myth than reality.
You Need a 20% Down Payment
Despite what your parents may have told you, a 20% down payment is generally not required to buy a home. In fact, these days the median down payment for first-time homeowners is just 7%. In fact, the minimum government-required down payment for a conventional mortgage is just 3%, and for FHA loans it’s just 3.5%—though it’s important to note that individual lenders may have higher requirements. If you’re a US military veteran or you’re buying certain types of property, you may qualify for a VA loan or a USDA loan, both of which don’t require a down payment.
There are advantages to a 20% down payment—it means lower monthly payments, less interest paid over the life of the loan, and access to lower interest rates. Down payments under 20% generally require mortgage insurance until the homeowner’s equity reaches 20%. Despite these downsides, lower down payments can make a lot of sense for homeowners in areas where home prices are rising quickly or where saving a down payment that high is unrealistic.
You Shouldn’t Buy Until You’re Ready for Your Forever Home
There’s something about buying a house that feels awfully permanent. However, you don’t need to wait until you’re ready to settle in one place for the rest of your life to buy a home. In fact, the average American homeowner only stays in their home for about 13 years.
There’s no doubt that a home purchase shouldn’t be a truly temporary living situation—in fact, there are tax implications for selling after living in a home for less than two years. The key is to give the home enough time to appreciate in value to cover your closing costs. While this is highly dependent on market conditions in a given area, most experts recommend that a homeowner plan to hold onto their property for five to seven years. That means buying a starter home or a home in an area where you plan to work for a decade or so makes sense for a lot of people.
Building a Home Is Only for the Wealthy
Most people assume that if they aren’t millionaires their options are limited to homes already on the market. After all, custom builds are wildly expensive, right? Thankfully, that’s not the case. Custom homes can be built at a wide variety of price points. The design and materials used can be adjusted to fit the buyer’s budget. These days, managing homebuilding costs is even easier thanks to services like Atmos, which helps you design and build the perfect house for you within your budget and helps manage the process from start to finish.
Renting Protects You from Property Taxes
For many people, property taxes are a major deterrent to property ownership. After all, when friends and family tell you about their tax bills, the numbers can seem jaw dropping. But what many people forget is that they are already paying property taxes when they rent—just not directly. After all, your landlord needs to pay his or her mortgage, taxes, and repairs, and that money needs to come from somewhere. Part of your rent payment is almost definitely going toward those property taxes. So why not pay them for a place of your own instead?
Homeownership is a big commitment, and certainly not something to rush into. It requires a stable financial situation and a good understanding of the costs involved. However, it is also far more accessible than most people understand. If you’re dreaming of owning a home, don’t let myths hold you back.
At Atmos, we help you build the home of your dreams so you can be a part of your ideal community. Build intentionally, from design to construction, when you build with Atmos.
