Buying a home in Las Vegas is an exciting step toward stability and independence. Yet, many potential buyers hesitate because they believe old mortgage myths. These misconceptions often keep families renting longer than they need to.
The problem is not a lack of opportunity, it’s a lack of correct information. Many first-time buyers think they need perfect credit, a huge down payment, or years of saving. In truth, there are flexible programs designed for a wide range of buyers. Understanding the facts makes the process smoother and far less stressful.
In this guide, we’ll uncover seven of the most common mortgage myths that stop buyers from reaching their goals. You’ll learn how modern lending works, what options really exist, and how Drennen Home Loans helps Vegas buyers make informed decisions with confidence.
Myth 1: You Need a 20% Down Payment
Many buyers delay homeownership because they believe a 20% down payment is required. In reality, most lenders now offer flexible programs that make buying possible with far less upfront cash.
- FHA loans may require as little as 3.5% down. This option is one of the most common for first-time buyers. It was created to help individuals with moderate credit scores or limited savings qualify for a mortgage. FHA loans are insured by the Federal Housing Administration, which gives lenders more flexibility when approving applications. You can read more about this program in our FHA Loans in Nevada section.
- VA loans often require no down payment at all. These loans are available to veterans, active-duty service members, and eligible spouses. The Department of Veterans Affairs guarantees a portion of the loan, which allows approved borrowers to finance 100% of their home’s value. In addition to no down payment, VA loans often come with lower rates and no private mortgage insurance, making them a powerful benefit for those who qualify.
- Conventional loans can start as low as 3%. Many buyers think conventional loans are only for people with perfect credit, but that’s not true. If you have a solid credit score and reliable income, you can qualify for programs that require as little as 3% down. These loans offer competitive rates and more freedom to remove mortgage insurance once you reach enough equity.
- Down payment assistance programs can bridge the gap. In Nevada, there are local and state-level programs designed to help with down payments or closing costs. These programs can provide grants or forgivable loans to make purchasing a home more affordable. Many buyers are surprised to learn they qualify for these benefits, which can reduce the time needed to save and help them enter the housing market faster.
Lower down payment programs make homeownership much more achievable. Instead of waiting years to save a large amount, buyers can explore options that fit their financial comfort. With expert guidance from Drennen Home Loans, you can find the right path toward your first or next home without unnecessary delays.
Myth 2–3: Your Credit Must Be Perfect / Preapproval Is Optional
Two myths stop many Las Vegas buyers before they even begin the mortgage process. These misunderstandings about credit and preapproval often create unnecessary fear.
Myth 2: You Need Perfect Credit
Many buyers believe they need spotless credit to buy a home, but that’s far from true. Conventional Home Loans often start at a minimum score of 620, while FHA loans can approve applicants with scores as low as 580. Even if your score isn’t ideal, steady payment history and responsible financial habits can make a big difference.
If your credit could use improvement, focus on paying bills on time, keeping balances low, and checking reports for errors. These simple steps can raise your score faster than you might expect. Drennen Home Loans helps local buyers review their credit and explore programs that match their situation.
Myth 3: Preapproval Isn’t Important
Skipping preapproval is one of the biggest mistakes buyers make. Preapproval shows sellers that you’re serious and financially ready. It also helps you understand your true budget before shopping.
Without preapproval, buyers risk falling in love with homes outside their price range. Getting preapproved early gives you confidence during negotiations and speeds up closing once your offer is accepted. You can find a clear step-by-step guide in our First-Time Homebuyer Guide to help you get started.
Taking these two steps, checking your credit and getting preapproved, creates a strong foundation for a successful home purchase.
Myth 4–5: You Can’t Refinance / Self-Employed Buyers Don’t Qualify
Refinancing and self-employment often raise questions among Vegas homeowners. Many assume they can’t qualify for new financing or improved loan terms, but that’s not true.
Myth 4: Refinancing Is Too Hard
Some homeowners think refinancing is a long, complicated process. In reality, refinancing can be simple and fast, especially with the right guidance. It’s often used to secure lower interest rates, shorten loan terms, or fund projects through cash-out options.
If you already own a home and want to explore savings or improvements, visit our Refinance Your Mortgage page to see how Drennen Home Loans helps streamline the process. A short consultation can reveal opportunities you might not realize you have.
Myth 5: Self-Employed Buyers Don’t Qualify
Many self-employed buyers believe that without a regular paycheck, they can’t get a mortgage. The truth is, lenders can use tax returns, profit and loss statements, or other financial records to verify income. Consistent earnings and good credit history can prove stability, even without a W-2.
Drennen’s Mortgage Team works closely with small business owners and independent professionals to help them qualify with confidence. Every situation is unique, and the right documentation can make all the difference.
Refinancing and self-employment should never hold you back from your goals. With proper support and clear planning, both paths can lead to successful homeownership.
These last myths stop many Las Vegas residents from achieving homeownership. Believing them can cost you valuable time and opportunities.
Myth 6–7: Renting Is Always Cheaper / All Lenders Are the Same
Two final myths often stop Vegas residents from moving forward with their home search. Both can cost you valuable time and long-term savings.
Myth 6: Renting Is Always Cheaper
Many renters assume they save money by avoiding a mortgage. The truth is, rent payments build no equity or long-term value.
- Monthly rents keep rising. In Las Vegas, rents often increase each year, while fixed mortgage payments stay stable.
- Ownership builds equity. Every payment you make increases your home’s value and strengthens your financial future.
- Renting offers no return. At the end of your lease, that money is gone. Mortgage payments become part of your own investment.
- Homeownership adds control. You decide when to renovate, upgrade, or even refinance as your needs change.
Over time, owning can cost less than renting, especially as property values grow and your mortgage balance decreases.
Myth 7: All Lenders Are the Same
Not all lenders offer the same programs, services, or local insight. Choosing the right partner can make a big difference.
- Rates and terms vary widely. Some lenders may offer special programs or better rates depending on your situation.
- Local experience matters. Drennen Home Loans understands the Las Vegas and Henderson housing markets better than out-of-state lenders.
- Personal service improves results. Our team takes time to explain options and guide you through every step.
- Faster response times. Working with a local lender often means quicker updates and smoother communication.
You can explore these differences through our Home Loans in Henderson, NV page to find a mortgage partner that truly fits your goals.
Ready to Separate Mortgage Facts from Fiction?
Believing the wrong information can delay your dream of homeownership. When you know the truth, you can move forward with clarity and confidence. At Drennen Home Loans, we take the confusion out of the mortgage process. Our local experts explain every step, from preapproval to closing, so you can focus on finding your perfect Vegas home.
📞 Have questions about your mortgage options? Connect today through our Contact a Loan Officer pag,e let’s get you closer to the perfect home 🏡
