The Homebuying Myths Standing Between You and Your First Set of Keys

The path to owning a home might be more accessible than you think

Marketplace Story

Published: March 4, 2026 | Last Updated: March 10, 2026

You're scrolling through your phone on a Sunday morning, watching another couple on HGTV debate whether they can live without a mudroom, and you're thinking: how? How are all these people buying houses? You're in a decent spot — stable job, bills paid on time, doing everything right — and yet homeownership still feels like something that happens to other people. Meanwhile, you're picking out another housewarming gift for a friend who just closed on a place, genuinely happy for them but quietly wondering what they know that you don't.

Here's the thing: they probably don't know something you don't. They just didn't let the myths stop them. And for LGBTQ+ folks, there are a few extra layers of myth to cut through. The homeownership rate among LGBTQ+ people is 51%, compared with 71% for people who identify as straight and cisgender, according to a 2024 Urban Institute analysis, and an Iowa State University study found that same-sex applicants were 73% more likely to be denied a mortgage than heterosexual couples with comparable financial profiles. “At Genisys Credit Union we take pride in fitting our mortgage lending and home loan products to the specific needs of each individual,” says Lance Smith, vice president of mortgage lending at Genisys Credit Union. “You will not find cookie cutter loans here — just customized home loan solutions, designed by mortgage lenders who understand what best fits your home, life, and budget.”

Those numbers tell a real story — but they don't have to be yours.

Let's walk through what's actually standing in your way — and what's just noise. Spoiler: a lot of it is noise.

You don't need as much money (or as high a credit score) as you think

Let's start with the big one. You do not need to save 20% of a home's purchase price before you can start shopping. For a $250,000 home, that would be $50,000 — a number that feels impossible when rent keeps climbing. The reality is far more accessible:

FHA loans require just 3.5% down
VA and USDA loans require nothing down for qualified buyers
Conventional loans can start at just 3% down

"Genisys Credit Union knows how hard buying your first home can be, and we’re here to make it easier on you,” Smith says. “Our exclusive First Time Homebuyer Mortgage program offers options tailored to the unique financial situation of these buyers.”

That same $250,000 home might only need $7,500 to get you in the door. Yes, putting down less than 20% means you'll pay Private Mortgage Insurance (typically 0.5% to 1.5% of your loan amount per year), but it also means you can start building equity now instead of watching rent money disappear while home prices keep rising.

The same goes for credit. You don't need a perfect score to qualify for a mortgage. Many lenders work with scores in the 600s, and some programs go even lower for first-time buyers. What matters more is your debt-to-income ratio and your ability to make consistent payments. And if you're carrying student loan debt? That doesn't automatically disqualify you either. As long as your monthly obligations — including your potential mortgage — stay within acceptable limits (usually around 43% of gross income), you can still qualify.

Start with a lender, not with Zillow

Here's where most people get it backwards. They scroll through listings, fall in love with houses they may or may not afford and rule themselves out before they even know what's possible.

The actual first step is getting preapproved. A preapproval tells you exactly what you can afford and signals to sellers that you're serious. In competitive markets, it can be the difference between getting your offer accepted and watching someone else move into the home you wanted.

"Genisys Credit Union offers the same simple pre-approval process to our first-time home buyers as we do to anyone applying for a mortgage so you will have the knowledge to focus your home search on the right properties" Smith notes.

And while you're building your team, don't skip the real estate agent. A good agent brings negotiation skills, market knowledge and protections you won't have on your own — and for LGBTQ+ buyers, having someone who understands your concerns about neighborhood safety and community acceptance is invaluable.

Not all mortgages are created equal

Once you're preapproved, you'll need to think about what kind of mortgage actually fits your life. The standard 30-year fixed-rate mortgage isn't automatically the best choice for everyone. It offers lower monthly payments, but you'll pay significantly more in interest over the life of the loan. A 15-year mortgage means higher monthly payments but far less interest overall. An adjustable-rate mortgage might make sense if you don't plan to stay in the home long-term. This is another area where working with a knowledgeable lender makes a real difference — they can walk you through the math and help you choose based on your financial goals rather than assumptions.

It's about more than a place to live

Homeownership builds equity, stabilizes your housing costs and creates a foundation for long-term financial security. While rent increases every year, your mortgage payment stays largely the same. That stability can be life-changing, especially for LGBTQ+ people who may not have access to generational wealth or family financial support.

The barriers are real, but they're not insurmountable. Down payment assistance programs and first time homebuyer education programs exist specifically to help buyers with lower incomes or non-traditional financial profiles. Whether you're in Detroit, Ann Arbor, Grand Rapids or anywhere in between, the path to homeownership starts with one conversation with a lender. You might be a lot closer than you think.

This content is made possible through our partnership with Genisys Credit Union. Visit genisyscu.org to get started on your journey to home ownership.