2 Myths About Mortgages That May Be Holding Back Buyers

Dated: 12/20/2016

Views: 219

F2 Myths About Mortgages That May Be Holding Back Buyers | Simplifying The Marketannie Mae’s “What do consumers know about the Mortgage Qualification Criteria?” Study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home.



Myth #1: “I Need a 20% Down Payment”


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%!


Myth #2: “I need a 780 FICO Score or Higher to Buy”


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.


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.


Julie Baldino - Owner-Managing Broker

Julie Baldino is a seasoned veteran of the Pacific Northwest real estate industry, and has consistently been in the top 10% in sales for over a decade in 2 states. In order to accommodate a rapidly ex....

Want to Advertise on this Site?

Latest Blog Posts

Foreclosure Crisis Review

As we find ourselves getting back to 2005 levels within the next year or so, we cannot forget what caused the 2010 spike. In 2010, 7.7 million families lost their homes to foreclosure, 1.2

Read More

4 Rules For Getting Your Home Sold

Today I wanted to talk to about four rules you need to remember when listing your home for sale.Looking to buy a home? Search all homes.Looking to sell a home? Get a FREE home value report.Today I

Read More

How We Helped Beth Buy A Home In Rain Sleet Or Snow

“Basically, I just cold-called Front Door Realty. I saw them on Google and I ended up working with Tracy. She was wonderful, she was persistent, she was tenacious, she was right there whenever we

Read More

Two Questions To Answer If You Are Thinking Of Downsizing

1- What kind of lifestyle would I like?Since most people who downsize tend to use the profits half for the downpayment of their new, smaller home and half for vacations and putting away for a

Read More