Buying a home is one of the biggest financial decisions you’ll ever make — and yet some of the most common beliefs about the process are flat-out wrong. If you’ve been holding off on homeownership because of something you heard, read, or assumed, this one’s for you.
Here are five mortgage myths we hear all the time, and the truth behind each one.
Myth #1: You need a 20% down payment.
This is probably the most persistent myth in homebuying — and it stops a lot of people before they even get started.
The truth? Most buyers put down far less. FHA loans start at 3.5% down. At SNMC, we offer exclusive programs like SNclose™, which provides down payment and closing cost assistance, and SNhome™, which offers a forgivable second lien option for qualifying borrowers. Some programs go as low as 0% down depending on eligibility.
The 20% rule has its roots in avoiding private mortgage insurance — not in what’s actually required to buy. Don’t let a number someone made up decades ago keep you from exploring your options today.
Myth #2: You need perfect credit.
Credit scores matter, but they’re not the whole story — and they’re certainly not a gate that only lets perfect borrowers through.
Scores in the 580–620 range can still qualify for certain loan types. SNMC offers Non-QM loan options with flexible documentation and credit requirements, designed specifically for borrowers who don’t fit the conventional mold. Self-employed? Recovering from a rough financial patch? There may be more paths forward than you think.
Lenders look at the full picture — income, debt, employment history, assets — not just a three-digit number.
Myth #3: Renting is always cheaper than buying.
On the surface, this one seems logical. But the math is more complicated than a monthly payment comparison.
When you rent, your payment covers a roof over your head — and that’s it. When you own, your payment builds equity, stabilizes your housing cost against rent increases, and gives you a stake in an asset that historically appreciates over time. The average homeowner’s net worth is 43 times higher than the average renter’s, according to the Federal Reserve.
That doesn’t mean buying is always the right move for everyone right now. But the idea that renting is automatically the financially savvy choice deserves a closer look. The numbers tell a more nuanced story.
Myth #4: You have to be debt-free before you can buy.
Life comes with debt — student loans, car payments, credit cards. If you’ve been waiting to eliminate all of it before buying a home, you could be waiting a very long time.
What lenders actually evaluate is your debt-to-income ratio (DTI) — how much of your monthly income goes toward debt payments. Carrying debt doesn’t disqualify you. Carrying too much relative to your income can create challenges, but that’s a calculation worth running, not an assumption worth making. Many of our borrowers close on homes while actively paying down other debt.
Myth #5: The process is too complicated.
We hear this one a lot, and we get it. Mortgages have a reputation for being overwhelming — the paperwork, the terminology, the timelines.
But that’s exactly what we’re here for. Our job is to walk you through every step, explain what matters, and make the process feel manageable. SNapp Home lets you start your application from your phone in minutes. And every SNMC loan officer is there to answer questions, run scenarios, and help you understand your options before you commit to anything.
The process only feels complicated until you have someone in your corner who knows it inside and out.
The bottom line:
Homeownership is within reach for more people than these myths would have you believe. Don’t let bad information make the decision for you.
To learn more, find a loan officer near you!
For many would-be homebuyers, the down payment is the wall. Not the credit score, not the income, not the monthly payment — the lump sum of cash required upfront before any of that even matters. SNhome™ was built to knock that wall down.
Available exclusively through SecurityNational Mortgage Company, SNhome™ is a down payment assistance program that pairs a second mortgage — either forgivable or repayable — with an FHA 30-year fixed first mortgage. It’s designed for buyers who are ready to own but need a bridge between where their savings are and where they need to be.
How It Works
SNhome™ provides either 3.5% or 5% assistance based on the lower of the purchase price or appraised value of the home. That money can be applied toward your down payment, closing costs, prepaids, or any combination of the three. It comes as a second mortgage and must be paired with an SNhome™ FHA first mortgage — SNMC funds both.
There are two ways the assistance can be structured, and the right choice depends on your situation.
The Forgivable Option
With the forgivable second mortgage, you receive 3.5% assistance at 0% interest with no monthly payments. Make 36 consecutive on-time payments on your first mortgage, and the balance is forgiven entirely — you never have to pay it back. It’s the stronger option for buyers who are committed to staying in the home long-term and want to minimize ongoing obligations. One important note: the forgiveness clock resets if a payment is ever late, so staying current on your first mortgage matters.
The Repayable Option
The repayable second mortgage offers up to 5% assistance with a 10-year repayment term. The interest rate on the second mortgage is set slightly above your first mortgage rate. This option is ideal for buyers who need a larger boost or are purchasing in a higher-cost market — it also qualifies for high-balance loan amounts.
All borrowers using the repayable option are required to complete a short informational video about loan payments before closing.
Who Can Qualify
SNhome™ follows FHA guidelines with some program-specific requirements. Here’s what you need to know:
- Minimum FICO: 580 for standard properties; 620 for manufactured homes
- Loan type: FHA 30-year fixed, purchase transactions only, primary residence only
- Property types: 1–2 unit properties; new construction is allowed if the property is complete at purchase
- Available in nearly all U.S. states where SNMC has licensed branches
Why It’s Exclusive to SNMC
SNhome™ isn’t a government grant or a third-party assistance program you could find through any lender. It’s exclusive to SecurityNational Mortgage Company. SNMC underwrites the product in-house, which means generally faster approvals and a smoother path to closing — no waiting on outside investors to make the call.
The Bottom Line
If the down payment has been the thing standing between you and homeownership, SNhome™ was built for you. Whether you want to minimize what you owe long-term with the forgivable option, or maximize your assistance with the repayable route, there’s a structure that fits.
*Assistance and Grant Programs are offered and provided by third-party entities whom set restrictions, conditions, qualification criteria, and repayment requirements to which SecurityNational Mortgage Company must abide.
You’ve been doing everything right. You’ve saved what you can. You’ve checked your credit. You’ve scrolled through listings and pictured yourself in that kitchen, in that backyard, hosting friends in that living room.
But every time you start to get serious about buying, you hit the same wall: the down payment.
It’s not that you can’t afford a monthly mortgage payment—you’re already paying rent, after all. It’s the upfront cash that stops you in your tracks. Five percent down on a $300,000 home is $15,000. Add in closing costs and you may be looking at $20,000+ just to get through the door.
For many first-time buyers, that’s the difference between owning a home and renting for another few years.
Here’s the good news: there may be a solution, and it’s only available through Security National Mortgage Company.
What Is SNclose™?
SNclose™ is a down payment assistance program designed to help address one of the biggest barriers to homeownership. For those who qualify, it may provide up to 5% of your home’s purchase price to use toward your down payment, closing costs, and prepaid expenses.
Depending on which option you choose and whether you meet all program requirements, you may not have to repay the assistance.
Two Options to Fit Your Situation
SNclose™ offers two paths for eligible borrowers. Both are designed to help make homeownership more accessible.
Option 1: Forgivable Assistance (3.5%)
This is the option many first-time buyers explore.
Eligible borrowers may receive 3.5% of the home’s purchase price as assistance. There’s no interest charged on the second lien. There’s no monthly payment on that amount. If the borrower meets all program requirements including making on-time payments on the first mortgage for the first three or five years and maintaining the property as a primary residence, the second lien may be fully forgiven.
Requirements may include:
- Minimum credit score of 640
- Paired with FHA or USDA financing
- Subject to additional underwriting requirements
Example: On a $300,000 home, eligible borrowers may receive $10,500 in assistance that could be forgiven if all program terms are met.
Option 2: Repayable Assistance (Up to 5%)
If you need additional assistance upfront, this option may provide up to 5% assistance with a 10-year repayment term. This option is not available for high-balance loans.
Requirements may include:
- Minimum credit score of 660
- Paired with FHA or USDA financing
- Subject to additional underwriting requirements
Example: On a $300,000 home, eligible borrowers may receive up to $15,000 in assistance, subject to qualification.
What If My Partner’s Credit Isn’t Great?
This is one of the most common questions we hear, and SNclose™ has a feature that may help.
Many first-time buyers are purchasing with a spouse or partner, and sometimes one person’s credit score is stronger than the other’s. With most programs, the lower score may disqualify you. SNclose™ offers a blended credit score feature that may help in certain situations.
The blended credit score feature may allow you to average both borrowers’ scores together if:
- The person with the higher income also has the higher credit score
- That person represents at least 60% of total household income
- Your blended score averages to 660 or higher
- All other program requirements are met
Example:
- Borrower 1: Credit score 760, earns $75,000/year
- Borrower 2: Credit score 603, earns $35,000/year
- Blended score: (760 + 603) ÷ 2 = 681
This may allow qualification where the lower individual score might otherwise present a challenge. Pricing is still based on the lower individual score. This feature is subject to automated underwriting system approval and all other program requirements.
Why SNclose™ Only Exists at SecurityNational Mortgage Company
This isn’t a government program. It’s not offered by other lenders. SNclose™ is a proprietary program exclusive to SecurityNational Mortgage Company, designed to help address the down payment challenge many qualified buyers face.
We’re also delegated to underwrite these loans in-house, which may help provide faster decisions and a smoother process for eligible borrowers.
What You May Be Able to Use SNclose™ For
For those who qualify, the funds from SNclose™ may be applied to:
- Your down payment
- Closing costs
- Prepaid items (like property taxes, homeowners insurance, and escrow setup)
These are the upfront costs that can make homeownership challenging to achieve.
How Does the Forgivable Option Work?
With the forgivable option, if you meet all program terms, the second lien may be forgiven. This means:
- You must maintain the property as your primary residence for the forgiveness period
- You must make all first mortgage payments on time (no payments 90+ days late during the first 36 0r 60 months)
- All other program requirements must be satisfied
If you refinance, sell the property, or fail to meet program requirements before the forgiveness period ends, the second lien becomes due and payable.
What Are the Program Requirements?
SNclose™ works with FHA and USDA loans. Eligibility requirements may include but are not limited to:
- Meeting minimum credit score thresholds
- Meeting FHA or USDA program guidelines
- Automated underwriting system approval (manual underwriting may be available for the forgivable option only)
- Property must be owner-occupied as primary residence
- Property types limited to 1-2 unit single-family homes, condos, and PUDs (subject to eligibility)
Requirements may change without notice. Not all applicants will qualify.
How to Learn More
If you’ve been working toward homeownership but the down payment has been a challenge, SNclose™ may be worth exploring.
Here’s what to do next:
- Contact a loan officer at SecurityNational Mortgage Company to discuss your specific situation and determine if you may qualify.
- Get pre-qualified. Understanding your potential eligibility can help you plan your home search.
- Ask questions. Make sure you understand all program terms, conditions, and requirements before proceeding.
Homeownership may be more accessible than you thin, and sometimes the right program can make the difference.
SNclose™ may be that program.
Ready to learn if you may qualify? Contact your loan officer today and ask about SNclose™, the down payment assistance program that’s only available with SNMC. Don’t have a loan officer yet? Find one
here.
We’ve all heard the term “house poor,” but what does it truly mean? Being “house poor” refers to a situation where the majority of your income is consumed by housing expenses, limiting your financial freedom.
Picture yourself basking in the glow of your new home, sipping coffee in that beautiful kitchen. Sounds dreamy, right? Now, imagine your bank account gasping for air as you struggle to keep up with mortgage payments, utility bills, and those surprise repair costs. This scenario is surprisingly common, and many homeowners find themselves in it.
A common mistake among first-time homebuyers is overextending themselves with homeownership.
What Makes Us Different
In 2024, 47% of SNMC borrowers were first-time homebuyers, which is almost twice the industry average of 24%, as reported by NAR. We prioritize building trust with you by taking the time to educate you about the various options available. Our goal is to help you understand what’s best for your unique financial situation, ensuring you can confidently navigate your homeownership journey and afford your dream home.
Tips to Avoid the House Poor Trap
- Understand Your Debt-to-Income Ratio: Keep your debt-to-income ratio below 40%. This ratio is crucial for lenders and helps you assess your financial health. If it’s above 40%, consider reducing your debts before buying a home.
- Start with a Solid Budget: Create a detailed budget that includes all housing costs, such as mortgage payments, property taxes, utilities, and maintenance. Ensure that your mortgage payment is less than 30% of your income to maintain financial comfort.
- Explore Down Payment Options: Don’t feel pressured to make a 20% down payment. Many lenders offer options as low as 0%. However, if you can afford a larger down payment, it may lead to better interest rates and lower monthly payments.
- Maintain Good Credit Health: A strong credit score is vital for securing favorable mortgage terms. Regularly check your credit report for errors and work on improving your score before applying for a mortgage.
- Tackle That Debt: Before making another big move, chip away at any current debts. Not only will it lighten your load, but it can also improve your credit score. Lenders love a high score, which could mean a lower interest rate.
What If You’re Already House Poor?
- Identify and Reduce Unnecessary Monthly Expenses: Review your monthly expenses to identify small, unnecessary costs that can be trimmed, such as daily coffee runs or unused subscriptions. Even cutting back on just a few items can free up significant cash, allowing you to allocate funds toward your mortgage or savings.
- Evaluate Mortgage Refinancing Options: If interest rates have dropped since you secured your mortgage, refinancing could lower your monthly payments and save you money in the long run. By refinancing, you may also be able to eliminate PMI if you’ve built enough equity in your home, further easing your financial burden.
- Explore the Possibility of a Home Equity Loan: If you have built up equity in your home, consider a home equity loan or line of credit. This can provide you with additional funds to manage expenses or consolidate debt.
- Pay Down Your Mortgage with Extra Cash: Throwing extra cash at your mortgage principal can significantly reduce the amount of interest you pay over time, leading to greater financial freedom. By paying down your mortgage faster, you can also eliminate private mortgage insurance (PMI) sooner, saving you even more money each month. Reach out to one of our loan officers to see if you can remove PMI.
Contact us to explore your options.
Finding Financial Comfort
Managing your home finances doesn’t need to be an uphill battle. Whether it’s throwing extra cash at your mortgage after scoring an unexpected bonus, there’s always a way back to financial comfort. You don’t necessarily have to become a minimalist or sacrifice all comforts; just be smart and stay flexible. Make it a habit to check your bank statements each month or even each week! You’ll be amazed at how quickly those small purchases add up.
Start Today
A knowledgeable Loan Officer will guide you through the essential steps to prepare for your home purchase or help you navigate your current situation. Starting these conversations now can set you on the path to achieving the stability you desire. Focus on establishing realistic and attainable goals for your homeownership dreams.
In today’s fast-paced world, where apps can deliver dinner in minutes and markets swing by the hour, one investment still stands the test of time:owning a home. While the concept of “generational wealth” might sound lofty or out of reach, the truth is this — every mortgage payment you make, every improvement you add, and every year you hold onto your home… you’re building it.
Whether you’re considering buying your first home or you already have a keychain with your last name on the front door, here’s why homeownership is one of the most powerful tools for creating lasting wealth for your family.
What Is Generational Wealth, Anyway?
Generational wealth is the kind of financial advantage that gets passed down — not just enjoyed in your lifetime, but available to your children, and their children too. This isn’t just about money in a bank account. It can be property, investments, or any asset that grows over time. And real estate is one of the most accessible ways for everyday families to build it.
Why Homeownership Creates Wealth
1. Equity Grows While You Sleep
Every month you make a mortgage payment, a portion goes toward building equity — your ownership stake in the home. Over the years, that equity grows, especially as home values rise. Think of it this way: rent disappears. Equity stays.
2. Value Appreciation Over Time
Homes typically increase in value over the long haul. Even through market dips, history shows that real estate tends to recover and grow stronger — especially when held over decades. That increase in value becomes real wealth you can access through refinancing, selling, or when you pass on.
3. Leverage & Opportunity
With one down payment, you gain control over a large asset. That’s financial leverage — your 10–20% down gives you 100% of the appreciation. Few other investments offer that kind of return.
Real Stories: How a Home Becomes a Legacy
It’s not just about dollars and cents. A home becomes part of your family story:
- A couple buys a starter home and upgrades over the years, using the equity to help pay for their child’s college.
- A grandparent passes down a mortgage-free home, giving their children a head start many never had.
- A family builds wealth by investing in small improvements over time, then uses profits from a home sale to fund retirement or buy a second property.
This is how wealth gets built — quietly, steadily, one generation at a time.
Already a Homeowner? Here’s What You’re Doing Right
If you already own a home, congratulations — you’ve made one of the smartest financial decisions possible. Now, think long-term:
- Can you refinance to a better rate or shorten your term?
- Would a few home improvements raise your home’s value?
- Have you explored turning your home into a rental in the future?
Even if you’re years away from selling or passing it down, the seeds of legacy are already planted.
First-Time Buyer? This Is Your Doorway
For first-time buyers, the idea of “generational wealth” might feel abstract. But here’s what’s real:
- Homeownership puts you in control.
- It sets a foundation for long-term stability.
- And it creates options for your future — whether it’s growing your family, building passive income, or simply having a space that’s truly yours.
Ready to Start or Grow?
Whether you’re just stepping into the world of homeownership or looking to maximize the potential of your current home, know this: The best investment might be right under your roof. Talk to a trusted loan officer, explore your prequalification options, or check out tools like the SNapp Home App to manage the journey with ease. Your future — and your family’s — could begin with a front door key.
Looking to start or strengthen your homeownership journey?
Reach out to your loan officer today —to talk about your goals, your next steps, and the legacy you want to build. Don’t have a loan officer yet?
Find one here.As a mortgage lender, we’ve helped countless families achieve their dreams of homeownership. We understand that owning a home isn’t always a walk in the park, but the benefits far outweigh the challenges. Let’s talk about why homeownership remains one of the most powerful ways to build long-term wealth and stability.
Building Equity, Not Someone Else’s Wealth
Every mortgage payment you make is like paying yourself instead of your landlord. While renters help their landlords build wealth, homeowners gradually increase their own net worth through equity. It’s like having a automatic savings account that grows over time.
Tax Benefits That Make a Difference
Homeownership comes with significant tax advantages, including the opportunities to deduct mortgage interest and property taxes. These deductions can lead to substantial savings come tax season, putting more money back in your pocket.
Freedom to Create Your Space
Want to paint your walls hot pink? Plant a garden? Finally get that dog you’ve always wanted? As a homeowner, you don’t need to ask for permission. Your home truly becomes your castle, allowing you to customize your space to match your lifestyle and preferences.
Protection from Rising Housing Costs
While renters face annual increases in their monthly payments, homeowners with fixed-rate mortgages enjoy more stable housing costs. In today’s inflationary environment, this predictability is more valuable than ever.
Let’s Be Real: It’s Not Always Easy
Homeownership comes with its own share of challenges. From unexpected repairs to property maintenance, being a homeowner means being responsible for everything that goes wrong. That leaky faucet? It’s on you now. The AC that decides to quit in August? Another problem to solve.
But here’s the truth: these challenges are temporary, while the benefits of homeownership are long-lasting. Every obstacle you overcome as a homeowner is an investment in your future and your family’s stability.
The Long-Term Perspective
When you’re writing that monthly mortgage check or dealing with a home repair, remember that you’re playing the long game. Homeownership is about building generational wealth, creating stability for your family, and investing in your future.
While the path to homeownership might not always be easy, it remains one of the most reliable ways to build wealth and create the life you want. As a company who’s helped many people and families navigate this journey, we can tell you that most homeowners look back and say, “It was all worth it.”
Ready to start your homeownership journey? Reach out to your loan officer to talk about your options and create a plan that works for you. Don’t have a loan officer yet? Find one
here.Remember, the best investment in your future might be the roof over your head.
