1. The Fear of Commitment

One of the biggest reasons people rent is the flexibility it offers. Owning a home means committing to a location, a mortgage, and long-term maintenance. Some worry about being "stuck" in one place, but is that fear justified?

Reality Check:

1. Most homeowners don’t stay in one home forever. According to the National Association of Realtors (NAR), the median homeownership tenure is about 13 years, but nearly half of first-time buyers sell within five to seven years—a time frame comparable to many long-term rentals.
2. Selling a home isn’t as difficult as it used to be. On average, homes in the U.S. sell in roughly 44 days (Realtor.com), and demand for homes remains strong in many markets.

2. The Myth That Buying Requires a Huge Down Payment

A common misconception is that you need 20% down to buy a home. While that might have been true decades ago, today’s loan programs allow for much lower down payments.

Reality Check:

1. USDA and VA loans: 0% down for eligible borrowers.
2. FHA loans: Just 3.5% down, available to buyers with credit scores as low as 580.
3. Conventional loans: Some allow as little as 3% down, depending on income and credit score.
4. Down Payment Assistance Programs: In 2023, down payment assistance covered 40% of first-time homebuyer purchases (Urban Institute).

How does this compare to renting?

The average renter pays $2,000-$4,000 upfront between first month’s rent, security deposit, and application fees. That’s often comparable to the cost of a down payment and closing costs with assistance programs and seller concessions.

3. Concerns About Credit Scores

Many renters assume they won’t qualify for a mortgage due to low credit scores. While a high credit score helps with lower interest rates, it’s not always necessary to buy a home.

Reality Check:

1. Minimum credit scores for loans:USDA & VA loans: 580+
2. FHA loans: 580 (or even 500 with a 10% down payment)
3. Conventional loans: 620+
4. According to Experian, the average FICO score in the U.S. is 715, but over 30% of home loans go to borrowers with scores under 680.
5. Mortgage lenders also consider compensating factors like stable employment, debt-to-income ratios, and savings.

4. Fear of Maintenance and Repairs

Renters often enjoy the convenience of having a landlord handle maintenance. The thought of unexpected repairs can be intimidating for first-time buyers.

Reality Check:

1. How much do homeowners actually spend? The average homeowner spends $3,192 per year (or $266 per month) on maintenance and repairs (HomeAdvisor).
2. Home warranties help. A home warranty costs around $300–$600 per year and can cover major systems like HVAC, plumbing, and appliances.
3. Building equity outweighs repair costs. The average homeowner gained $24,000 in equity in 2023 alone (CoreLogic).

5. "I Can’t Afford It"—But Can You Afford to Keep Renting?

The biggest reason people rent is the belief that homeownership is too expensive. However, the numbers tell a different story.

Reality Check:

1. The median rent in the U.S. reached $1,958 per month in 2024 (Redfin), while the median mortgage payment for first-time buyers was $2,008—a difference of just $50 per month (NAR).
2. Renters are losing out on equity. In the last decade, home values increased by an average of 4.5% per year, but even with a 1.5% appreciation rate, homeowners still build significant equity over time.
3. Fixed mortgage vs. rising rent: Rent prices increased 5.3% in 2023 alone, whereas a 30-year mortgage keeps payments stable.

Financial Comparison Example (1.5% Appreciation Rate):

Let’s compare renting vs. buying over five years, assuming you rent for $1,800 per month or buy a $250,000 home with a mortgage payment of $1,950 per month (including taxes, insurance, and mortgage insurance).

Renting for Five Years

1. Total Rent Paid: $1,800 x 60 months = $108,000
2. Equity Gained: $0
3. Money Lost to Rent Increases: Likely to go up each year

Buying a $250,000 Home with 1.5% Annual Appreciation

1. Home Value After 5 Years: ~$270,000 (1.5% annual appreciation)
2. Mortgage Principal Paid Down: ~$20,000
3. Total Home Equity After 5 Years: ~$40,000

What does this mean?

1. As a renter, you’ll have spent over $100,000 on rent with nothing to show for it.
2. As a homeowner, you’ll have built $40,000 in equity while making nearly the same monthly payment.

Final Thoughts

While renting makes sense for some people in specific situations, many renters could be homeowners with the right financial guidance. The biggest obstacles—down payments, credit concerns, and repair fears—are often more manageable than people think.

If you’ve been renting and wondering whether you could buy a home, let’s talk—you might be closer than you realize!