2 Myths About Mortgages That May Be Holding Back Buyers

Dated: 12/20/2016

Views: 533

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.


Blog author image

Julie Baldino

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

How Your Homes Deal Breaker Can Attract The Perfect Buyer

When you’re starting the process of selling your home, be prepared to see your home in a whole new light.A really, really bright light. That’s because buyers will notice all the great things

Read More

Low Inventory Might Help You Sell Your Home During COVID

Selling Your Home During COVID? You Might Have an Edge... Less is more when it comes to successfully selling your home during the COVID pandemic. That’s because if you’re still going ahead

Read More

Millennials Will Do Whatever It Takes To Own A Home

Millennials are facing major stress trying to come up with ways to balance a down payment,student loans, and impending mortgages, but they are finding solutions: (Image provided by

Read More

5 Upgrades That Do Not Add Value To Your Home

Today I’m going over the five upgrades you should avoid when preparing to list your home.  If you’re looking to put your home on the market, there are probably some projects you have

Read More