Buying a home is one of the biggest financial decisions many military families will make. But for many prospective buyers, the process can feel intimidating, especially when misinformation or outdated advice begins to circulate.
Servicemembers often hear conflicting advice from friends, social media, or even well-meaning relatives about what it takes to buy a home. Some of these ideas are based on older lending practices, while others simply don’t apply to military borrowers who have access to unique programs like the VA Home Loan.
Understanding what is true and what is not can help military buyers approach the process with confidence. Here are some of the most common homebuying myths—and the reality behind them.
Related: How to Use the AMS Homebuying Guide
Myth 1: You Need to Put 20% Down
One of the most persistent homebuying myths is that buyers must put down 20% of the purchase price to qualify for a mortgage. For many buyers, that would mean saving tens of thousands of dollars before even starting the home search. Fortunately, this requirement rarely applies to military borrowers.
VA Home Loans allow eligible servicemembers, Veterans, and some surviving spouses to purchase a home with no down payment in most cases. This benefit can make homeownership accessible years sooner than it might otherwise be.
Even outside of the VA Home Loan program, many loan options require far less than 20% down. Some programs allow down payments as low as 3% to 5%, and many buyers may qualify for down payment assistance programs that can further reduce upfront costs.
For military families who move frequently or want to preserve savings for relocation expenses or emergencies, these options can make a significant difference.
Myth 2: You Need Perfect Credit
Another common misconception is that only buyers with flawless credit can qualify for a mortgage. While credit scores are certainly important, they are just one part of a lender’s overall evaluation. Mortgage lenders also look at income stability, debt levels, and financial history to determine whether a borrower can reasonably manage a mortgage payment.
Many military buyers qualify for home loans with credit scores well below what people assume is required. In fact, the VA Home Loan program was designed to be flexible and accessible, recognizing the financial realities of military service.
For borrowers whose credit may need improvement, there are often steps that can be taken to strengthen a mortgage application. Paying down credit card balances, avoiding new debt and correcting errors on credit reports can all help improve eligibility.
A conversation with an AAFMAA Mortgage Services LLC (AMS) Military Mortgage Advisor can often reveal that buyers are closer to qualifying than they realize.
Related: How Credit Score Changes Could Affect Military Homebuyers
Myth 3: Using Down Payment Assistance Will Slow Down the Purchase
Down payment assistance (DPA) programs are often misunderstood. Some buyers assume that using assistance will complicate the process or delay closing. In reality, many assistance programs are designed to work smoothly alongside traditional mortgage products, including VA Home Loans in some situations. These programs may provide help with down payments, closing costs or both.
For eligible buyers, this support can significantly reduce the upfront cost of purchasing a home.
While any mortgage program requires documentation and coordination, experienced lenders regularly work with assistance programs and can guide borrowers through the process. With proper planning, these programs typically add minimal complexity to a transaction.
For military families who want to preserve savings or minimize upfront expenses during a move, exploring available assistance options can be a smart strategy.
Related: Down Payment Assistance Tips & Help
Myth 4: Mortgage Fees are Non-Negotiable
Many buyers assume that the costs associated with obtaining a mortgage are fixed and cannot be adjusted. While certain fees are set by third parties, others may be negotiable depending on the lender and the structure of the loan. Borrowers may also have opportunities to compare loan estimates from different lenders to find competitive terms.
Military borrowers should also be aware that VA Home Loans limit certain fees that lenders can charge. These consumer protections are designed to ensure that servicemembers are not overcharged during the mortgage process.
Understanding the breakdown of closing costs and asking questions about available options can help buyers better manage expenses.
Myth 5: You Should Wait Until Interest Rates Drop
Interest rate headlines often dominate housing news, leading some buyers to believe they should delay purchasing until rates fall to a certain level. While interest rates do influence affordability, waiting for the “perfect” rate can be risky. Home prices and local market conditions, such as housing inventory, may change while buyers wait, potentially offsetting any benefit from slightly lower rates.
For military families who receive new duty assignments, timing decisions based solely on rate predictions may not be practical.
It’s also important to remember that mortgages can be refinanced* later if interest rates improve. Many VA borrowers use the VA Interest Rate Reduction Refinance Loan (IRRRL) program to lower their rate when market conditions change.
For buyers who are financially ready and plan to remain in a home for several years, focusing on overall affordability and long-term stability may be more important than timing the market perfectly.
We’re Here to Help
Thinking about buying, ready to start home shopping in earnest, or considering a refinance? An AMS Military Mortgage Advisor, a licensed mortgage loan originator, will be happy to provide you with an honest and fair comparison of your mortgage options, including a wide range of affordable mortgages designed to meet your needs.
Ensuring Armed Forces Mutual Members obtain the best mortgage possible is our mission. Get your free mortgage assessment today or give us a call at 844-422-3622!
*Refinancing your mortgage may result in higher finance charges over the life of the loan.