The Credit Score Myth That’s Holding Would-Be Buyers Back

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The Credit Score Myth That’s Holding Would-Be Buyers Back.

Would-be homebuyers aren’t sitting on the sidelines because they don’t want to buy. They’re sitting out because they think they can’t. And sometimes, it’s their credit score that’s holding them back.

According to a Bankrate survey, 2 out of every 5 (42%) Americans believe you need excellent credit to qualify for a mortgage. That may be why, when renters are asked why they don’t own yet, “my credit isn’t good enough” comes up often.

Maybe you’re in the same boat. You look at your score, see it’s not where you want it to be, and assume buying your first place just isn’t realistic right now.

But here’s what you need to know.

Even though a lot of people assume you need flawless credit to buy a house, that’s not necessarily the case.

You Don’t Need Perfect Credit To Buy a Home

So, where’s this myth come from? Part of the confusion stems from the fact that the typical homebuyer today does have a fairly strong credit score. In fact, according to data from the NY Fed, the median credit score for all buyers is 775.

But that doesn’t mean you need a score that high to qualify.

Looking at recent homebuyers, a number were able to get a mortgage with scores below that threshold. Data shows 10% of scores were around 660. Which means some were higher than that and some were lower, but the median in that lowest 10th percentile was around that range (see graph below):

a graph showing a line graphSo, even if your score isn’t as high as you want, that doesn’t automatically close the door. FICO explains there is no universal credit score you absolutely have to have when buying a home:

“While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single ‘cutoff score’ used by all lenders, and there are many additional factors that lenders may use . . .”

The best thing to do is to talk to a trusted lender to see what’s possible for you. Because a portion of buyers are buying with scores in the 600s – and maybe that means you can too.

Bottom Line

Your credit score is important. But that doesn’t mean it has to be perfect.

If credit has been the reason you’ve been waiting to buy a home, it might be time to take another look at your options. If you want help understanding where you stand and what your next step could be, connect with a local lender.

You don’t need to have everything figured out to start the conversation.

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Turning a House Into a Home: The Benefits You Can Actually Feel

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Turning a House Into a Home: The Benefits You Can Actually Feel.

There’s a lot of conversation about home prices, mortgage rates, and affordability right now – and those things are important. But if you’re thinking about buying a home, it’s worth remembering something the headlines rarely talk about: people don’t buy homes just for financial reasons. They buy them for their lives.

Because while homeownership can absolutely be a smart long-term financial move, it also comes with some emotional benefits spreadsheets just can’t capture. Maybe that’s why a 2025 survey from Fannie Mae notes:

“Consumers were twice as likely to mention lifestyle benefits (67%)—like security, customization, and outdoor space—than financial benefits (34%) when explaining why their homes have become more important in recent years.”

Here are a few reminders of what owning a home gives you that renting never will.

1. A Milestone You Get To Be Proud Of

Buying a home is a big deal. First home, fifth home – it doesn’t matter. It’s a moment you’ll remember. And when you finally get those keys and walk through the door, that feeling of “I did this” hits different. It’s not just a purchase. It’s an accomplishment.

2. A Place That Feels Like Your Reset Button

Life is busy. Having a place that’s truly yours where you can shut the door, take a breath, and settle into your own routine is something renters rarely talk about until they finally experience it. Home becomes the place you go to recharge, not just the place your mail is delivered.

3. Space That Fits the Way You Actually Live

Need a quiet corner for work calls? A backyard big enough for the dog that thinks it’s a person? A shorter drive to see the people who are most important to you? When you own, you get to choose a space that fits your life now and where it’s heading – and it just feels right.

4. Freedom To Make It 100% Yours

Want to paint the kitchen navy? Go for it. Thinking about a wall of floating shelves or a bold wallpaper moment? Do it. Need space for a home gym or a reading nook? Make it happen. Homeownership gives you the freedom to shape your space instead of asking for permission to change it.

Bottom Line

Buying a home isn’t only about dollars and data points – it’s about building a life you love.

So, if you’re thinking about a move in 2026, keep the emotional side in the conversation too. And when you’re ready to explore your options, reach out to a trusted local agent who can guide you through the process with clarity and confidence.

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Why Buying a Home Still Pays Off in the Long Run

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Why Buying a Home Still Pays Off in the Long Run.

Renting can feel much less expensive and much simpler than buying a home, especially right now. No repairs, no property taxes, no worrying about mortgage rates – you just pay the bill and move on with your life.

But here’s the part people don’t talk about enough: renting doesn’t help you build your financial future. Meanwhile, homeowners grow their net worth just by owning a home.

So, if you’ve been wondering whether buying is still worth it, the long-term math is clearer than you might think.

Renting vs. Owning: How the Costs Really Compare

Let’s break down one of the key differences between renting and buying. When you rent, your payment goes to your landlord, and then it’s gone. When you own, part of your payment comes back to you in the form of equity (the wealth you build as the value of your home increases, and you pay down your home loan).

So, while renting may seem more affordable now, you have to remember it comes at a long-term cost: you’re not building your wealth. And it turns out, that’s a bigger miss than you may expect.

First American recently analyzed the long-term financial impact of renting versus owning a home. They compared mortgage payments, property tax, insurance, repairs, and maintenance against the equity gained through home price appreciation and paying down the mortgage. And they did that during several different time frames to see if it tells a consistent story:

  • 2006: the start of the housing bubble
  • 2015: 10 years ago
  • 2019: just before the pandemic (the last normal years in the market)
  • 2022: when mortgage rates jumped

In each time frame, two things were true: renters ended up losing money over time. And homeowners gained it.

Here’s some data so you can see this play out. Each color represents one of the key time frames. The solid lines show the buyer’s investment over time and how their net worth actually grew the longer they lived in their home. The dashed line represents the renter’s investment. In the end, they sank more and more cash into renting without gaining any financial benefit.

a graph of a graph showing the impact of owning vs renters lossThe takeaway is simple: time in a home builds wealth. Time renting doesn’t.

Basically, homeowners come out ahead. And the analysis shows that’s even after you factor in the other expenses that come with homeownership, like insurance, repairs, and property taxes. And that’s the case for every time frame First American looked into.

On the flip side, renters spent money on their rent, but didn’t gain any long-term financial benefit. That’s true no matter what window of time you look at in the study.

Now, that doesn’t mean buying always beats renting in the short term. But the longer you own, the wider the wealth gap becomes.

Affordability Is Starting To Improve

You might still be thinking, “Okay, but buying feels out of reach for me right now.” Fair.

The past few years haven’t been easy for buyers. But things are starting to shift. Mortgage rates have come down this year, home prices are softening, and incomes have been rising. And according to Zillow, typical monthly payments have gotten a little easier compared to this time last year. Not by a lot, but enough to make a difference.

No, buying isn’t suddenly easy. But it is easier than it was just a few months ago. And in the long run, history shows it’s worth it. 

Bottom Line

Renting may feel less expensive today, but owning is what builds real wealth over time. And with affordability starting to improve, the path to homeownership may be opening up more than you think.

If you’re curious what buying could look like for you, connect with a local real estate who can help you plan your next move, pressure-free.

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Why Buying a Home Still Pays Off in the Long Run

with:

Why Buying a Home Still Pays Off in the Long Run.

Renting can feel much less expensive and much simpler than buying a home, especially right now. No repairs, no property taxes, no worrying about mortgage rates – you just pay the bill and move on with your life.

But here’s the part people don’t talk about enough: renting doesn’t help you build your financial future. Meanwhile, homeowners grow their net worth just by owning a home.

So, if you’ve been wondering whether buying is still worth it, the long-term math is clearer than you might think.

Renting vs. Owning: How the Costs Really Compare

Let’s break down one of the key differences between renting and buying. When you rent, your payment goes to your landlord, and then it’s gone. When you own, part of your payment comes back to you in the form of equity (the wealth you build as the value of your home increases, and you pay down your home loan).

So, while renting may seem more affordable now, you have to remember it comes at a long-term cost: you’re not building your wealth. And it turns out, that’s a bigger miss than you may expect.

First American recently analyzed the long-term financial impact of renting versus owning a home. They compared mortgage payments, property tax, insurance, repairs, and maintenance against the equity gained through home price appreciation and paying down the mortgage. And they did that during several different time frames to see if it tells a consistent story:

  • 2006: the start of the housing bubble
  • 2015: 10 years ago
  • 2019: just before the pandemic (the last normal years in the market)
  • 2022: when mortgage rates jumped

In each time frame, two things were true: renters ended up losing money over time. And homeowners gained it.

Here’s some data so you can see this play out. Each color represents one of the key time frames. The solid lines show the buyer’s investment over time and how their net worth actually grew the longer they lived in their home. The dashed line represents the renter’s investment. In the end, they sank more and more cash into renting without gaining any financial benefit.

a graph of a graph showing the impact of owning vs renters lossThe takeaway is simple: time in a home builds wealth. Time renting doesn’t.

Basically, homeowners come out ahead. And the analysis shows that’s even after you factor in the other expenses that come with homeownership, like insurance, repairs, and property taxes. And that’s the case for every time frame First American looked into.

On the flip side, renters spent money on their rent, but didn’t gain any long-term financial benefit. That’s true no matter what window of time you look at in the study.

Now, that doesn’t mean buying always beats renting in the short term. But the longer you own, the wider the wealth gap becomes.

Affordability Is Starting To Improve

You might still be thinking, “Okay, but buying feels out of reach for me right now.” Fair.

The past few years haven’t been easy for buyers. But things are starting to shift. Mortgage rates have come down this year, home prices are softening, and incomes have been rising. And according to Zillow, typical monthly payments have gotten a little easier compared to this time last year. Not by a lot, but enough to make a difference.

No, buying isn’t suddenly easy. But it is easier than it was just a few months ago. And in the long run, history shows it’s worth it. 

Bottom Line

Renting may feel less expensive today, but owning is what builds real wealth over time. And with affordability starting to improve, the path to homeownership may be opening up more than you think.

If you’re curious what buying could look like for you, connect with a local real estate who can help you plan your next move, pressure-free.

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Why Buying a Home Still Pays Off in the Long Run

with:

Why Buying a Home Still Pays Off in the Long Run.

Renting can feel much less expensive and much simpler than buying a home, especially right now. No repairs, no property taxes, no worrying about mortgage rates – you just pay the bill and move on with your life.

But here’s the part people don’t talk about enough: renting doesn’t help you build your financial future. Meanwhile, homeowners grow their net worth just by owning a home.

So, if you’ve been wondering whether buying is still worth it, the long-term math is clearer than you might think.

Renting vs. Owning: How the Costs Really Compare

Let’s break down one of the key differences between renting and buying. When you rent, your payment goes to your landlord, and then it’s gone. When you own, part of your payment comes back to you in the form of equity (the wealth you build as the value of your home increases, and you pay down your home loan).

So, while renting may seem more affordable now, you have to remember it comes at a long-term cost: you’re not building your wealth. And it turns out, that’s a bigger miss than you may expect.

First American recently analyzed the long-term financial impact of renting versus owning a home. They compared mortgage payments, property tax, insurance, repairs, and maintenance against the equity gained through home price appreciation and paying down the mortgage. And they did that during several different time frames to see if it tells a consistent story:

  • 2006: the start of the housing bubble
  • 2015: 10 years ago
  • 2019: just before the pandemic (the last normal years in the market)
  • 2022: when mortgage rates jumped

In each time frame, two things were true: renters ended up losing money over time. And homeowners gained it.

Here’s some data so you can see this play out. Each color represents one of the key time frames. The solid lines show the buyer’s investment over time and how their net worth actually grew the longer they lived in their home. The dashed line represents the renter’s investment. In the end, they sank more and more cash into renting without gaining any financial benefit.

a graph of a graph showing the impact of owning vs renters lossThe takeaway is simple: time in a home builds wealth. Time renting doesn’t.

Basically, homeowners come out ahead. And the analysis shows that’s even after you factor in the other expenses that come with homeownership, like insurance, repairs, and property taxes. And that’s the case for every time frame First American looked into.

On the flip side, renters spent money on their rent, but didn’t gain any long-term financial benefit. That’s true no matter what window of time you look at in the study.

Now, that doesn’t mean buying always beats renting in the short term. But the longer you own, the wider the wealth gap becomes.

Affordability Is Starting To Improve

You might still be thinking, “Okay, but buying feels out of reach for me right now.” Fair.

The past few years haven’t been easy for buyers. But things are starting to shift. Mortgage rates have come down this year, home prices are softening, and incomes have been rising. And according to Zillow, typical monthly payments have gotten a little easier compared to this time last year. Not by a lot, but enough to make a difference.

No, buying isn’t suddenly easy. But it is easier than it was just a few months ago. And in the long run, history shows it’s worth it. 

Bottom Line

Renting may feel less expensive today, but owning is what builds real wealth over time. And with affordability starting to improve, the path to homeownership may be opening up more than you think.

If you’re curious what buying could look like for you, connect with a local real estate who can help you plan your next move, pressure-free.

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Is It Better To Rent or Buy a Home Today?

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Is It Better To Rent or Buy a Home Today?.

a graph of orange and blue lines

Some Highlights

  • A study shows that 70% of prospective buyers fear the long-term consequences of renting. And here’s why.​
  • Rent usually rises over time and that can make it harder to save up to buy a home. But when you buy, you can stabilize your housing expenses and grow your net worth as home values rise.
  •  While renting may be the less expensive option in some markets, it can’t match the long-term benefits of homeownership. What’s your #1 reason for wanting to buy?
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Buying a Home May Help Shield You from Inflation

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Buying a Home May Help Shield You from Inflation.

It feels like everything is getting more expensive these days. That’s because inflation has remained higher than normal for longer than expected – and that’s impacting the costs of goods, services, and more. And with rising costs all around you, you’re probably questioning: is now really the right time to buy a home?

Here’s the good news. Owning a home is actually one of the best ways to protect yourself from the rising costs that come with inflation.

A Fixed Mortgage Protects You from Rising Housing Costs

One of the key benefits of homeownership is that when you buy a home with a fixed-rate mortgage, your biggest monthly expense — your mortgage payment — stabilizes. Sure, your payment could rise slightly as your homeowner’s insurance and property taxes shift. But no matter what happens with inflation, your principal and interest payments won’t change.

That’s not the case if you rent. Rent tends to rise over time, and it usually goes up even faster than the rate of inflation. Just look at the data from the Bureau of Economic Analysis (BEA) and the Census Bureau (see graph below):

a graph of a price increaseSo, while renters face higher costs year after year, homeowners with a fixed mortgage rate lock in their monthly payments, making it easier to budget no matter what happens with inflation.

Home Prices Typically Rise Faster Than Inflation

Another big reason homeownership is a great hedge against inflation is that home values tend to appreciate over time — often at a higher rate than inflation, according to data from the BEA and Fannie Mae (see graph below):

a graph of a price appreciationThat makes real estate one of the strongest long-term investments during times of rising prices. While inflation can chip away at the value of cash savings, real estate typically holds or grows in value, allowing you to build wealth.

On the other hand, renting offers no protection against inflation. In fact, it does the opposite — when inflation drives up costs, landlords often pass those increases onto tenants through higher rents.

That means as a renter, you’re continually paying more without gaining any financial benefit. But as a homeowner, rising prices work in your favor by increasing the value of your home and growing your equity over time.

And with experts forecasting continued home price growth, that means you’re making an investment that usually grows in value and should outperform inflation in the years ahead.

In short, a fixed-rate mortgage protects your budget, and home price appreciation grows your net worth. That’s why homeownership is a strong hedge against inflation.

Bottom Line

Inflation can make everyday expenses unpredictable, but owning a home gives you stability. Unlike rent, your monthly mortgage payment stays pretty much the same over time. Plus, the value of your home is likely to increase after you buy.

How would having a fixed housing payment change the way you budget for the future?

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The Big Difference Between Renter and Homeowner Net Worth

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The Big Difference Between Renter and Homeowner Net Worth.

a stack of money on a blue background

Some Highlights

  • If you’re torn between renting or buying, don’t forget to factor in the wealth-building power of homeownership.
  • Unlike renters, homeowners gain equity as they pay their mortgage and as home values rise. That’s why, on average, a homeowner’s net worth is nearly 40x higher than a renter’s. 
  • Connect with an agent if you want to learn more about the financial benefits of homeownership or the programs that can help make buying possible.
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Renting vs. Buying: The Net Worth Gap You Need To See

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Renting vs. Buying: The Net Worth Gap You Need To See.

Trying to decide between renting or buying a home? One key factor that could help you choose is just how much homeownership can grow your net worth.

Every three years, the Federal Reserve Board shares a report called the Survey of Consumer Finances (SCF). It shows how much wealth homeowners and renters have – and the difference is significant.

On average, a homeowner’s net worth is nearly 40 times higher than a renter’s. Check out the graph below to see the difference for yourself:

Why Homeowner Wealth Is So High

In the previous version of that report, the average homeowner’s net worth was about $255,000, while the average renter’s was just $6,300. That’s still a big gap. But in the most recent update, the spread got even bigger as homeowner wealth grew even more (see graph below):

a graph with green line and orange lineAs the SCF report says:

“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”

One big reason why homeowner wealth shot up is home equity.

Equity is the difference between your home’s value and what you owe on your mortgage. You gain equity by paying down your mortgage and when your home’s value goes up.

Over the past few years, home prices have gone up a lot. That’s because there weren’t enough available homes for all the people who wanted one. This supply-demand imbalance pushed home prices up – and that translated into faster equity gains and even more net worth for homeowners.

If you’re still torn between whether to rent or buy, here’s what you should know. While inventory has grown this year, in most places, there’s still not enough to go around. That’s why expert forecasts show prices are expected to go up again next year nationally. It’ll just be at a more moderate pace.

While that’s not the sky-high appreciation we saw during the pandemic, it still means potential equity gains for you if you buy now. As Ksenia Potapov, Economist at First American, explains:

“Despite the risk of volatility in the housing market, homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”

But prices and inventory are going to vary by area. So, lean on a local real estate agent. They’ll be able to give you the local trends and speak to the other financial and lifestyle benefits that come with owning a home. That crucial information will help you decide the best move for you right now. As Bankrate explains:

“Deciding between renting and buying a home isn’t just about cost — the decision also involves long-term financial strategies and personal circumstances. If you’re on the fence about which is right for you, it may be helpful to speak with a local real estate agent who knows your market well. An experienced agent can help you weigh your options and make a more informed decision.”

Bottom Line

If you’re not sure if you should rent or buy, keep in mind that if you can make the numbers work, owning a home can really grow your wealth over time.

And if homeownership feels out of reach, connect with a local real estate agent and lender. They can help you explore programs that may make buying possible.

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Buying Beats Renting in These Top Cities

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Buying Beats Renting in These Top Cities.

a screenshot of a table

Some Highlights

  • Based on a recent study, in 22 of the top 50 metros, the monthly mortgage payment is lower than the rent payment.
  • Make sure you work with a pro who can help you crunch the numbers and see how your city stacks up. 
  • This may be your opportunity to forget renting for good. If you want to see which option makes the most sense in your area, connect with a local agent.
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