Mortgage Myths That Might Be Holding You Back from Buying a Home in Central IL

🧠 Mortgage Myths That Might Be Holding You Back from Buying a Home in Central IL

Think you need 20% down?
Worried your student loans disqualify you?
Think you can’t buy unless your credit score is perfect?

You’re not alone—and you’re probably wrong.

As a real estate broker who’s helped hundreds of buyers in Peoria, Tazewell, and Woodford counties, I hear these myths every week. And unfortunately, they keep great people stuck in the rent cycle longer than necessary.

Let’s bust the big ones—so you can move forward with confidence.

❌ Myth #1: You Need 20% Down to Buy a Home

Truth: You can often buy a home with as little as 3% down.

There are even 0% down options available through:

USDA loans (many parts of Central IL qualify!)
VA loans (for eligible veterans and active military)
First-time buyer grant programs

Yes, 20% down helps you avoid private mortgage insurance (PMI), but waiting to save that much can cost you more in rising prices and rent.

Let’s look at your situation and explore the smart options available right now.

❌ Myth #2: Student Loans Mean You Can’t Get a Mortgage

Wrong again.

Lenders understand that many borrowers—especially younger buyers—carry student loan debt. It doesn’t automatically disqualify you.

Here’s what matters:

Your debt-to-income ratio (DTI)
Whether your loans are in deferment or repayment
Your overall credit and job stability

A good local lender will help calculate what you can afford and what programs you qualify for—even with student loans.

❌ Myth #3: You Need Perfect Credit to Buy a Home

Nope. While a higher score = better rate, many buyers qualify with scores in the mid-600s.

FHA loans are designed for buyers with lower credit scores or less traditional credit history. Even if your score isn’t ideal, I can connect you with lenders who will help you get mortgage-ready—not just say no.

❌ Myth #4: You Should Wait Until Interest Rates Go Down

Waiting sounds logical—until you do the math.

If rates drop, competition rises. That can mean:

Higher prices
More bidding wars
Less room for negotiation

Meanwhile, you can always refinance later if rates improve. But waiting could cost you the home you want now—and delay building equity.

❌ Myth #5: You Can’t Buy If You’re Self-Employed

Totally false.

Yes, the process is a bit more paperwork-heavy. But if you’ve been self-employed for 2+ years and can document your income, many lenders are happy to work with you.

I work with trusted local loan officers who understand how to help small business owners, freelancers, and gig workers buy homes.

Knowledge = Power (And Homeownership)

Don’t let bad info keep you from taking the first step. If you’re renting or unsure if now’s the right time to buy, let’s talk.

I’ll give you honest advice and connect you to a lender who’s more coach than calculator.

📞 309-200-5480
🌐 CallDuvall.com

#CallDuvall #JimMaloofRealtor #PeoriaRealEstate #TazewellCountyHomes #WoodfordCountyRealEstate #HomeBuyingMyths #FirstTimeBuyerTips #CentralILHomes #MortgageHelp #BuySmart