11/14/2023
๐ฎ ๐ ๐๐๐ต๐ ๐๐ฏ๐ผ๐๐ ๐ ๐ผ๐ฟ๐๐ด๐ฎ๐ด๐ฒ๐ ๐ง๐ต๐ฎ๐ ๐ ๐ฎ๐ ๐๐ฒ ๐๐ผ๐น๐ฑ๐ถ๐ป๐ด ๐๐ฎ๐ฐ๐ธ ๐๐ผ๐บ๐ฒ ๐๐๐๐ฒ๐ฟ๐
Myth #1: โI Need a 20% Down Paymentโ
Fannie Maeโs survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 76% of Americans either donโt know (40%) or are misinformed (36%) about the minimum down payment required.
Many believe that they need at least 20% down to buy their dream home. New programs actually let buyers put down as little as 3%.
See the results of a Digital Risk survey of Millennials who recently purchased a home in the chart.
As you can see, 64.2% were able to purchase their home by putting down less than 20%, with 43.8% putting down less than 10%!
Myth #2: โI need a 780 FICO Score or Higher to Buyโ
The survey revealed that 59% of Americans either donโt know (54%) or are misinformed (5%) about what FICO score is necessary to qualify.
Many Americans believe a โgoodโ credit score is 780 or higher.
To help debunk this myth, letโs take a look at the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.1% of approved mortgages had a credit score of 600-749.
Bottom Line
Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach.
Many times buyers with low scores are still able to qualify for home loans. So don't get discouraged and give us a call today! Your home may be within your reach, call us for your no obligation consultation 915-944-HOME.
