Debunking Common Homeownership Myths for Prospective Buyers

Buying a home may seem intimidating, especially in today’s market conditions, but debunking common homeownership myths can help prospective buyers realize their dream of owning a home. Lisa Frison, Head of Financial Inclusion and Racial Equity at Citi, shares her insights to dispel these misconceptions and help potential buyers build generational wealth through homeownership.

Myth: I Don’t Have Credit. Being “credit invisible” affects many Americans, particularly diverse and underserved communities. Citi’s HomeRun mortgage program offers alternative ways to demonstrate creditworthiness, such as proof of rent and utility payments, helping individuals without traditional credit histories.
Myth: I Don’t Have Enough Savings. Banks offer programs for new homebuyers that eliminate the need for mortgage insurance. Citi’s HomeRun program enables borrowers to put as little as 3% down, with a minimum 1% borrower contribution. Additionally, Citi’s Lender Paid Assistance provides up to $7,500 in closing cost funds, making homeownership more affordable.
Myth: I Should Start House Hunting with a Realtor. Starting with your lender can be beneficial. They can explore homebuyer assistance programs and provide a realistic view of what you can afford through pre-qualification or pre-approval. Once you have a clear budget, a real estate agent can help you find the right home within your financial means.
Myth: I Earn Too Much to Qualify for Assistance. Lender assistance programs may be more extensive than you realize. Citi, for example, has increased lending assistance to borrowers with income up to 120% of the median income. Loan officers can guide you on income eligibility and identify properties in eligible census tracts.
Myth: I Should Keep Renting Because I’m Priced Out of the Market. First-time and affordable homebuyer programs exist to help individuals purchase homes they can afford. Remember, homeownership offers the opportunity to build wealth and leave a legacy for future generations, which renting cannot provide.

In conclusion, understanding and debunking these myths can help prospective buyers overcome barriers and realize their homeownership goals. With innovative programs and assistance available, aspiring homeowners can take steps towards building generational wealth through homeownership.