Introduction: Let’s Bust Some Myths

Buying your first home in North Carolina can feel overwhelming — and if you’ve spent time on Google or Reddit, you’ve probably seen a lot of conflicting advice. Some of it is flat-out wrong, and some of it is only half-true.

The problem? These myths keep buyers on the sidelines longer than they need to be — or they push people into making decisions without a clear plan.

Let’s clear the air. Here are the most common first-time homebuyer myths in NC and the truth behind them.

Myth #1: You Need 20% Down to Buy a Home

This is probably the most common myth — and it stops a lot of people from even looking at their options.

The truth: There are plenty of programs that let you buy with 0% down (VA and USDA loans), or as little as 3% down on conventional loans. And if you qualify for down payment assistance (DPA), grants can cover 2–5% of your loan amount — sometimes forgivable the day you close.

Yes, 20% down avoids private mortgage insurance (PMI), but that doesn’t mean it’s required. For most first-time buyers, waiting until you’ve saved 20% just delays homeownership unnecessarily.

Myth #2: Renting Is Always “Throwing Money Away”

You’ve probably heard someone say, “Stop paying your landlord’s mortgage!” And while building equity in your own home is a huge advantage, renting isn’t always the wrong choice.

The truth: Renting can make sense if you:

• Need flexibility (job change, moving soon)
• Want less responsibility (landlord handles maintenance)
• Are building savings or repairing credit before buying

But if you’re planning to stay in Raleigh for a few years, buying can lock in your monthly payment, protect you from rent hikes, and start building equity. Renting isn’t “bad” — it’s just about timing and your goals.

Myth #3: You Can’t Buy If You Have Student Loans

Student loans are one of the biggest fears for first-time buyers, but they don’t automatically disqualify you.

The truth: What matters most is your debt-to-income ratio (DTI) — the percentage of your monthly income that goes toward debt payments. Lenders will look at your income, your loan payments, and your overall credit profile.

Plenty of buyers with student loans close on homes every year in North Carolina. The key is balancing your DTI and having a solid pre-approval strategy.

Myth #4: Your Credit Has to Be Perfect

If you’ve seen ads for “perfect credit needed,” ignore them.

The truth:

• VA loans and FHA loans allow lower credit scores.
• USDA and conventional loans are more restrictive but still don’t require perfection.
• Many lenders can advise quick wins to nudge your score higher (e.g., paying down specific balances).

Perfect credit helps with interest rates, but it isn’t the barrier people think it is.

Myth #5: It’s Always Cheaper to Buy Than Rent in Raleigh

With rent prices climbing, it’s tempting to think buying is always cheaper. But it isn’t that simple.

The truth:

• In some neighborhoods, mortgage payments (with taxes/insurance) can be lower than rent.
• In others, especially with HOA fees or higher property taxes, renting might still be less in the short term.
• Long-term, buying usually wins because of equity — but the math depends on your budget and timeline.

This is why comparing your rent to a real mortgage scenario is so important.

Myth #6: You Don’t Need an Agent for New Construction

New construction seems straightforward — you pick a lot, choose finishes, and move in. But walking in without your own agent can cost you.

The truth: Builder reps work for the builder, not you. Their job is to protect the builder’s interests. Having your own agent ensures someone is looking out for:

• Negotiations (upgrades, price, incentives)
• Contract details and timelines
• Inspections and walkthroughs with accountability

Even with new construction, representation matters.

The Bottom Line

There are plenty of myths about buying your first home in North Carolina — and believing them can keep you from taking the next step. The truth is:

• You don’t need 20% down or perfect credit.
• Renting isn’t bad if you need flexibility.
• Student loans don’t automatically disqualify you.
• And yes, you still need professional guidance — even with new builds.

“My job is to cut through the noise and give you the real answers — no myths, no fluff, just clarity about your best path forward.” – Michael Wolff

Next Steps

Or, if you prefer to start with a guide, grab the free NC First-Time Homebuyer Guide and work through the basics at your own pace.