A woman gardening with a gracefully aging golden retriever
A woman gardening with a gracefully aging golden retriever

spring into your new home: 3 common house-buying myths debunked

Tips to make buying your first home a breeze

Table of Contents

Spring is widely recognized as the most popular time of year to buy a home. If you’re a first-time home buyer, navigating the housing market can feel overwhelming. With endless information available, it’s hard to know what’s truly reliable. We’re here to help answer your home-buying questions and dispel some of the mystery surrounding the housing market. Below are some common myths and the truths behind them.

Myth #1: You need a 20% down payment

While Although a 20% down payment was the traditional standard, it is no longer required for purchasing a home. If you’re interested in buying a house but don’t have 20% to contribute up front, a variety of flexible options may be available. You may qualify for a USDA, FHA, or VA loan, which offer no or low down-payment options.

Regardless of the loan type, having a good credit score benefits the home buyer. Your Mortgage Loan Officer will look at your credit to help determine mortgage rates and loan terms. First Financial also offers a variety of affordable loans for qualified borrowers, including our Community Builder, Dreambuilder, and CHAMP loans. Here are some highlights from each loan option.


Government loans

USDA: A USDA loan is a United States Department of Agriculture loan. USDA loans “assist approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas.”1 Those who qualify must meet income-eligibility and agree to personally occupy the residency, among other requirements. To check your eligibility, you can head over to USDA’s website.

FHA: An FHA loan is a Federal Housing Administration loan. FHA loans are credit score-dependent, which makes them a good option for those with lower credit scores. With a minimum 3.5% down payment for borrowers with a credit score of 580 or higher, FHA loans are often a good fit for first-time home buyers.2 It's also a good option for those with limited savings or a history of bankruptcy. More information is available on the U.S. Department of Housing and Urban Development’s website.

VA: A VA home loan is a veteran-backed loan for veterans, service members, and surviving spouses. With a VA home loan, buyers are able to purchase their home with a 0% down payment. They also offer lower interest rates, flexible credit guidelines, limited closing costs, and no private mortgage insurance payments.3 VA loans are available to help veterans buy, build, repair, retain, or adapt a home for personal occupancy. The U.S. Department of Veterans Affairs has more information on their website.


First Financial Bank loans*

Dreambuilder: Saving up for a downpayment is often the biggest hurdle for home buyers. With the Dreambuilder program, qualified borrowers can access a second mortgage that can be used towards your new home’s down payment and closing costs. With a little as $0 funds required at closing4 and a 0% fixed interest rate on the second mortgage, the Dreambuilder program makes homeownership more accessible and affordable.

Community Builder: For home buyers with limited credit history or limited income, as well as those who want to buy a home in a low- to moderate-income area, our Community Builder program can help reduce home buying costs. With no private mortgage insurance requirements, reduced closing costs, and options for grant funds and repair escrows, this loan can help make your home buying dreams a reality.

CHAMP: Our Community Housing Affordable Mortgage program is designed to make homeownership more accessible to buyers with limited credit history, limited income, or those looking to purchase a home in a low -to-moderate income area, including first-time home buyers. With down payment options as low as 3% and no private mortgage insurance required, this program offers an affordable pathway to owning your own home.

Myth #2: It’s cheaper to rent than to own

You may have heard that renting is often cheaper than owning a house. While that may be true in certain U.S. cities, purchasing your own home typically yields greater long-term benefits. As a homeowner, you enjoy the stability of predictable, fixed-rate mortgage payments, while renters face rising costs due to inflation and landlord discretion.  Owning a home also increases your personal wealth. With each payment, you build valuable equity, an asset that can open doors to opportunities such as a home equity line of credit which can be used for home renovations, consolidating debt, or even funding a dream vacation. Beyond equity, homeowners often benefit from savings, tax advantages, and greater financial stability. 

The first step in the home-buying process is to connect with a mortgage lender and get pre-qualified for a loan. Partnering with an experienced Mortgage Loan Officer is essential. They will guide you through the process, help you evaluate the best lending solution, and explain details like closing costs, interest rates, and more. Your Mortgage Loan Officer will help you get prequalified for a loan and estimate how much you can borrow. With their expertise, they can help you manage expectations, explore every available option, and smoothly guide you through the initial steps—ensuring you establish a budget that works for you. There are a variety of mortgage calculators available to help you understand your budget and the type of house you can afford. Don’t forget that in addition to your mortgage, you’ll be paying for insurance, utilities, possible HOA fees, and more. 

It’s important to find a knowledgeable Mortgage Loan Officer, as they’ll help you find the best mortgage lending solutions and assist with closing costs, interest rates, and more. 

Myth #3: You’ll be stuck with the same mortgage payment forever

If you’re hesitant to buy a house when interest rates are high, you’re not alone. As of  March 18, 2026, the national average for a 30-year mortgage was 6.27%.5 However, if you have the savings, a good credit score, and are ready for the commitment, don’t let high-interest rates be the one thing holding you back from buying a home. You don’t have to be stuck with high rates for the next 30 years – refinancing is a viable option to lower interest rates and term loans. When you refinance your loan, you replace your current mortgage with an entirely new loan. When you refinance, you could lower your interest rate, lower your monthly payment, decrease your loan’s term, change from an adjustable-rate to a fixed-rate mortgage, and more.

Have questions about your mortgage options? We have answers. Our experienced Mortgage Loan Officers are available and ready to offer solutions that fit your needs. First Financial offers a variety of mortgage options to give you flexibility and help you find the home of your dreams.