One More Time… You Do Not Need 20% Down To Buy NOW
byThe KCM CrewonApril 26, 2016inFirst Time Homebuyers,For Buyers,Move-Up Buyers
A survey by Ipsos found that the American public is still somewhat confused about what is actually necessary to qualify for a home mortgage loan in today’s housing market. The study pointed out two major misconceptions that we want to address today.
1. Down Payment
The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 36% think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less.
Many renters may actually be able toenter the housing market soonerthan they ever imagined with new programs that have emerged allowing less cash out of pocket.
2. FICO Scores
The survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. In actuality, theaverage FICO scoresof approved conventional and FHA mortgages are much lower.
The average conventional loan closed in March had a credit score of 753, while FHA mortgages closed with a 685 score. The average across all loans closed in March was 722. The chart below shows the distribution of FICO Scores for loans approved in March.
If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, sit down with a professional who can help you understand your true options.
Looking to buy or sell call the real estate professional Rochelle Klein-Loper with Exit Realty Premier at 954-655-0726 in Northern Broward County, Florida and 561-501-6248 in South Palm Beach County, Florida.
Author:Salvatore Defrisco Phone: 561-644-0052 Dated: April 26th 2016 Views: 133 About Salvatore: ...
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