Are you short that 20 percent down payment? Have you been in a job less than five years? Is that out-of-control college credit card frenzy years ago keeping you from even thinking about applying for a home loan?

If any of these scenarios ring true for you, it doesn't mean you can't buy a home.

Although rising home prices are making it increasingly difficult for first-time homebuyers, more Americans could own a home if they were more in tune with accurate information about the homebuying process and the range of loans available.

Here are the myths:

·               You need 20% of the cost up front.  44% of homebuyers believe this myth.

·               Housing lenders are required by law to give you the best possible loan rates.  39% of homebuyers believe this is true.

·               39% also believe you need to be in the same job for five years to qualify for a mortgage.

·               You need to have perfect credit to buy a home. This is the least common myth with only 31% of homebuyers believing this to be true.

·               36% of homebuyers don't know that mortgage interest is tax deductible.

So, to set the record straight:

·               Today there are a number of innovative mortgage products offered with 3% down payment. Some even offer no-down payment options if credit is excellent.

·               Lenders give you the best rates possible, based on your credit scores, employment, debt-to-income ratio, and your down payment (not on their own in-house standards).

·               While job stability is important, you don't need to be working for five years in the same job to get a loan, especially if you have a larger down payment and a good credit history. There are even mortgage products for those who are self-employed and have difficulty documenting their income—if their credit is good.

·               You don't need to have perfect credit to buy a home, but it will affect your interest rate.  To get the best rates, you might consider credit repair (ask your loan officer to help you) or a larger down payment.

·               And finally, when you weigh the financial costs versus the benefits of buying and owning a home, you'll want to factor in the tax deductions. Closing costs, points, and the mortgage interest you pay each month (which is a good chunk of your payment unless you've made a huge down payment) are all tax deductible.

First-time homebuyers need to educate themselves on what it takes to buy a house and all the alternatives.

When you're ready to start your home search, visit www.GoFindRealEstate.com for access to all Orange County homes on the market!