The Top 5 Homebuying Myths – and why they’re busted

A lot of the people we’ve worked with have considered homeownership in the past – and some of them have even applied – but many of them haven’t even dreamed of starting the house owning process.

Why? Well, there are some common myths about what it takes to become a homeowner these days – and just like the popular show, “Myth Busters”, Trio is here to bust some myths too, homebuying myths!

Myth #1: You Must Put 20% Down

The reason why putting down 20% when you’re buying your home is a smart idea is because it means you’ll pay less for it over time. 20% is a good rule of thumb, but there are mortgages available that will allow for down payments as low as 3%. But 3% on a $700k condo is still $21k! And, if you pay less than 20%, you have the added expense of mortgage insurance.

But with Trio, you can get start living in the house that you want to own – someday! – while you save up money for your down payment. Our lease programs allow you up to 5 years, but you can assume the mortgage at any time.

Myth #2: You’re in It for the Long Haul

Let’s face it: If we’re not ready to commit, then we just assume that we should rent. So, the idea of a 30-year mortgage takes buying a home off the table for many of us.

But did you know that the average amount of time people own their home in the US is 13 years?

Big life changes such as divorce, loss of a job, or death of a family member can impact this average. But there are many of us who just need more flexibility in our financing.

Maybe we’ve just moved to a new city and we’re not sure how long we’ll stay. Or perhaps we’re working in a field that requires us to be more mobile, and we don’t think signing a mortgage is in our best interest.

With Trio, however, your desire to invest in your future doesn’t have to be at the expense of your need for flexibility. We offer lease terms of 3 to 5 years, and can even help you find someone to assume your mortgage if you need to move out of town for work or another opportunity.

Myth #3: Renters are More Financially Savvy

Not to be too blunt, but this is just wrong.

Let’s say you’re considering whether to rent or to buy in Atlanta, GA. According to Rent Jungle, the average monthly rent is $1580. Now, the average home costs $202,100; if you put 20% down on that, with a 4% interest rate over 30 years, you’ll be paying $976 per month!

And the best part is, you own it. You can paint the walls, rip out that shag carpet, put a hot tub in the backyard – whatever you want.

Every city’s housing market is different, so you can find out how your rent versus own situation compares by checking Rent Jungle and using Trio’s Mobile App for lease prices.

Myth #4: Only Stellar Credit Need Apply

Did you know that the average credit score across the US is 687? The minimum to qualify for a mortgage backed by agencies such as Fannie Mae or Freddie Mac is 620; but the higher your credit score, the lower your interest rate.

These days, our credit is affected by a variety of “life happens” moments – school debt, medical bills, big life changes, increased costs of living, and more. This reality is one of the main inspirations for Trio to develop and offer our lease-to-own program. We designed them to be available to anyone with a credit score of at least 580 because we know that life happens to the best of us.

In fact, we know that having a secure place to live – with no fear of your rent being doubled or tripled on a month’s notice – is one of the best ways to help you get where you want to go. Our program gives you the stability to work on improving your credit, whether that be paying down debt, establishing a credit history, or recovering from a bankruptcy.

Myth #5: You’re on Your Own

Did you also miss that day at school where they went through savvy money management? We sure did! And we’re not alone. Most of us haven’t been taught great financial skills, and we have had to learn many of our lessons the hard way.

We’ve worked with enough people to know that learning these skills is essential to building wealth and securing your financial future. So we’ve partnered with financials counselors like HLP.guru, Urban League (of Atlanta) and Georgia Sustainable Community Ventures who can help you learn how to raise your credit score, save for your down payment, frugally care for your home, and more.

With Trio, you’re not alone in achieving your financial dreams

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Now that we’ve busted a few of these common myths, what do you think? Are you ready to take the next step? We hope so! Trio’s program is built to help you realize your dream, so contact us today.