August 24, 2016 by Jeff Lowen
Fannie Mae’s “What do consumers know about the Mortgage Qualification Criteria?” recent Study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home. Share the news! Everyone should know this…
- Fiction: “I Need a 20% Down Payment”
Fact: Fannie Mae’s survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 76% of Americans either don’t 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%.
Below are the results of a Digital Risk survey of Millennials who recently purchased a home.
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%!
- Fiction: “I need a 780 FICO Score or Higher to Buy”
Fact: The survey revealed that 59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary to qualify.
Many Americans believe a ‘good’ credit score is 780 or higher.
To help debunk this myth, let’s 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.
The moral of the story…
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. Here are some additional resources that may help:
- Strapped for cash? Here are some available Downpayment Assistance Programs that may help. Coupled with negotiation strategies your agent MUST HAVE, this could save you thousands!
- Here’s a report about the pitfalls of buying a home and what to do about them. This could save you thousands of dollars in unnecessary expenses.
- Ready for the next step? Choosing a real estate agent. Not all agents are created equal. One is your friend and unknowingly may cost you $50, $100, $500 on your mortgage! Another is screened and recommended with great negotiating skills. How can you find one? Click here.
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