The truth? Most renters in Southern California are closer to homeownership than they realize.
If you’ve been putting off buying because you’re waiting for “the right time,” you’re not alone. Rising prices, mixed headlines, and old financial myths have convinced many families they can’t qualify, when in reality, many can.
Let’s clear up five of the biggest misconceptions that keep renters on the sidelines, and what’s actually true in today’s market.
Myth 1: You Need 20% Down
This one’s been around forever, and it’s just not true. You do not need 20% down to buy a home.
Here’s the real picture:
- Many conventional loans allow as little as 3% down.
- FHA loans start at 3.5% down and are designed for first-time or moderate-income buyers.
- Some programs (like VA and USDA) even offer 0% down options for qualified buyers.
And if saving that down payment feels impossible, down payment assistance programs can help. California, in particular, has several options that combine grants and low-interest loans to help with the upfront costs.
What matters most isn’t the percentage — it’s having a plan. A good loan officer can help you structure that plan based on your income, debt, and timeline.
Myth 2: Perfect Credit Required
Many renters assume they need a flawless credit score to qualify. That’s another myth.
While top-tier rates go to borrowers with scores in the 740+ range, there are programs for buyers well below that threshold:
- FHA loans can be approved with credit scores as low as 580 (sometimes even lower with compensating factors).
- Conventional loans start around 620, with flexible underwriting for high-income or low-debt levels.
Even more important: credit isn’t permanent. If your score needs work, a loan officer can build a 3- to 6-month credit improvement plan that might move you up a rate tier and save you thousands long-term.
So if your credit isn’t perfect, don’t assume you’re out of the running. Getting guidance early is often the fastest way to become “ready.”
Myth 3: Rates Must Fall Before Buying
This one’s especially common right now — but it’s also one of the most expensive myths.
Yes, rates matter. But waiting for a perfect number often means missing your perfect window. In Southern California, where home prices continue to rise steadily, waiting for rates to drop half a percent can easily cost more in appreciation than you’d save on interest.
Let’s look at the math:
If you’re eyeing a $650,000 home and prices rise just 3% next year (a conservative local estimate), that home could cost nearly $20,000 more by the time rates move slightly.
Even if rates do fall later, you can always refinance. You can’t go back in time and buy at last year’s price.
Smart buyers focus on monthly affordability and opportunity, not short-term market predictions.
Myth 4: Pre-Approval Locks You In
Many renters hesitate to get pre-approved because they think it’s binding — like signing a contract. In reality, pre-approval is simply a snapshot of your current buying power.
It tells you:
- What loan amount and programs you may qualify for.
- What monthly payment range fits your income and debt profile.
- What, if anything, to improve before applying.
There’s no obligation to use that lender, move forward, or buy right away. Think of it as getting your bearings before the hike — you’re just checking the map.
And if you’re six months out? Perfect. You’ll have time to fix small issues, save strategically, and go into the process informed.
What the Perfect Process Reveals Instead
Here’s what we see when renters finally take that first step: they discover clarity, not commitment.
When you sit down for an options review, your loan officer walks you through:
- What you can afford today, comfortably.
- How much you might save (or lose) by waiting another year.
- Which loan programs fit your credit and down payment goals.
- What your monthly payment range actually looks like.
The process often replaces anxiety with direction — and that’s what gets people unstuck.
In Southern California, timing is rarely perfect. But preparation always pays off.
Try a Low-Pressure Options Review
If you’re renting and wondering whether 2026 could finally be your year, it’s time for clarity — not commitment.
At Alevate Group, we specialize in helping families in Southern California compare loan options, down payment paths, and affordability targets before they ever apply.
Try a low-pressure options review and get a clear picture of what’s actually possible. No sales pitch, no rush, just answers.
