HOA Laws in Texas
Updated June 2026
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If you've been putting off buying a home because you think you need a massive down payment, perfect credit, or years of savings, you're not alone. In today's market, many buyers assume homeownership is out of reach. The good news? Some of the most common beliefs about buying a home simply aren't true.
Let’s bust those myths keeping you from taking that next step so that you’ll be better educated when it comes to beginning the process.
Myth: “I need at least 20% down to buy a home.”
This myth is the one that we hear most often and that unnecessarily hampers many people from buying a new home. 3 out of 5 Americans (62%) believe that you need a down payment of 20% or more to purchase a home, based on a recent survey conducted by NerdWallet.
While putting 20% down may help buyers avoid private mortgage insurance (PMI), it's far from the only path to homeownership. According to recent industry data, many first-time homebuyers put down less than 10%, and there are financing programs available to qualified buyers requiring as little as 3% to 3.5% down.
Through M/I Financial, LLC there are loan programs that can do as little at 3.5% down, which is quite different than the 20% you may have thought was necessary.
For example, if the purchase price of your home is $370,000, with 3.5% down, you could move in with a down payment just under $13,000!
So, don’t worry about taking years to save up 20% and missing out on the opportunity to get in the community you love.
Myth: “I have to have my entire down payment at the time of contract to buy the home.”
Many buyers assume they need to have every dollar of their down payment sitting in the bank before they can move forward.
M/I Homes has made the process simple. At the time of signing a contract, we collect a deposit that secures the home we're building specifically for you. The amount varies by location, but in many communities, the required deposit may be lower than buyers expect. That deposit is then credited back to you at closing.
Depending on the community, you may choose from Quick Move-In homes that are available sooner or to-be-built homes with longer construction timelines. For buyers building from the ground up, that additional time can provide an opportunity to continue saving, pay down debt, and strengthen their overall financial picture before closing day.
Myth: “My credit score isn’t perfect, so it’s probably not good to buy until it is.”
A perfect credit score of 850 is like a unicorn. Only 1.2% of Americans have this score, so it’s not something the average buyer has. An average credit score is around 700, and the best interest rates are usually for anything above 760.
If you’re below that 760, it certainly doesn’t take you out of the game. Typically, anything above 620 is something that would be eligible for financing, provided income, debt, and other factors are where they need to be.
In the event you are around 620, or even 600, a conversation with one of our M/I Financial, LLC loan officers can provide guidance on steps needed to improve the score.
Just like a down payment, the time it takes to build the home allows you to pay off debt, clean up accounts, and work on other items to improve your credit rating. Some homeowners are able to obtain a better rate at closing because they raise their scores during the building process!
If you have any questions on where you stand with your credit score and what sort of interest rate that will award you, reach out to one of our M/I Financial, LLC loan officers. They will be able to pre-qualify you for one of our homes and answer any questions you may have.
Myth: “I don’t think I can afford a $350,000 house.”
When many buyers look at a home's purchase price, they immediately assume the monthly payment will be out of reach.
Instead of focusing solely on the sales price, it's important to consider the bigger picture and evaluate how a potential monthly payment fits within your overall budget.
Your monthly housing cost depends on a variety of factors, including your down payment, financing program, taxes, insurance, and any available incentives. Comparing that estimated payment to what you're currently spending on rent or an existing mortgage can provide valuable perspective.
Owning a newly built home also offers benefits that are difficult to put a price tag on, including:
- Personalizing your interior finishes and design selections
- Modern layouts designed for today's lifestyles
- Energy-efficient features that may help reduce utility costs
- A new-home warranty for added peace of mind
- Fewer concerns about major repairs or costly replacements immediately after move-in
The best way to determine affordability is by exploring your individual options with a lending professional who can help you understand what works for your unique situation.
Myth: “I’m too busy and don’t have time to get all the paperwork together.”
M/I can help with this! Our all-digital loan process makes it quick and easy. Your pre-approval can be completed online in less than 5 minutes! There’s no chasing down paperwork or statements from past years. By utilizing our secure technology, many of your accounts can be verified through our online portal.
If you have questions, there is always someone available to pick up the phone and talk through the details. Let us help you find your dream home and make the move today! Let us Welcome you to Better at M/I Homes.
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