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smiling woman meeting with housing counseler

Ask a housing coach: Common homebuying misconceptions

By Liz Keuler

June 2026

Buying a home is daunting, filled with big questions. You may wonder how to save enough for a down payment, what credit score you need, and whether you would even qualify for a mortgage. Wouldn’t it be nice to have an expert walk you through it?

A housing counselor can do just that! Housing counselors are trained professionals certified by the Department of Housing and Urban Development (HUD) to provide expert advice on buying a home – usually at little to no cost to the homebuyer.

To understand common misconceptions holding people back and how working with a housing counselor or coach can help, we spoke with Jordan Villegas, a housing counseling expert in Milwaukee, WI. Jordan was the Homebuyer Coaching Program Manager at Acts Housing and is now the leader of the Neighborhood Development team for the United Community Center.

Common misconceptions

Jordan says some of the most common misconceptions he hears as a homebuyer coach relate to down payments – specifically, how much a potential homebuyer may be required to put down. “For some reason, 20% is just stuck in everyone’s mind, when that’s just not the case,” Jordan says. “There are a variety of tools that first-time homebuyers can use to ensure those upfront costs stay low.”

Options first-time homebuyers might use to make a lower down payment include mortgage insurance, down payment assistance, and/or specialized lender programs.

Another misconception? “People think they need to have perfect credit,” Jordan says. Your credit score does affect your loan terms, but as Jordan says, “Your credit score is not the end all, be all.” That’s why Jordan believes potential homebuyers should start the education process sooner rather than later, either with a housing counselor or other sources of information – to help them take the most efficient steps to reach their end goal of buying a home.

Working with a housing counselor or coach 

Sitting down with someone to talk about your finances can be a vulnerable moment, so it can be helpful to know what to expect. Jordan stresses that a housing counselor or coach will come to your initial meeting with an open mind, looking to provide guidance for your unique situation.

“When you first start your relationship with a homebuyer coach,” Jordan says, “we’ll do a review of your credit, your employment, your income, and any other financial details that are necessary for us to determine your mortgage readiness. We’ll evaluate your situation through the eyes of a lender, which helps us determine the next best steps for you.”

Those steps could include paying off collections, building up savings, or strengthening your employment history. Your coach will stay in touch with you while you work through any barriers that may come between you and a mortgage loan. Your coach may also be able to connect you with preferred lenders and/or resources that offer down payment assistance.

The homebuying journey is not always a straight line

Jordan emphasizes that potential homebuyers shouldn’t be discouraged if they’re starting from a rocky place or they hit a roadblock. “We call it a journey for a reason,” he says. “We all want to have a good trajectory, but there will be ups and downs. We all make mistakes.”

Jordan has personally worked with many families who have struggled with uneven credit, trouble saving for a down payment and other challenges. He has seen how when those families stuck to their plans and built good habits, they ended up meeting their goals. “Stay committed to the journey,” Jordan says, “It will get you to your end goal at the end of the day.”

How to connect with a housing counselor

If you’re interested in finding housing counselors in your area, go to HUD's website and search by zip code.

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Liz

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Liz Keuler is the editor of Readynest. She spent a decade meandering through radio, nonprofits and the corporate world before convincing MGIC to hire her based on her staunch grammatical convictions. She lives in a charming 100-year-old bungalow on Milwaukee’s East Side. Her interests include old Ernst Lubitsch films, new action movies, 60s girl pop, Regency romance novels, word games, sewing and shallots.
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