DON'T ASSUME YOU NEED A HIGH CREDIT SCORE

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YOU DO NOT NEED 20% DOWN

One More Time…You DO NOT Need 20% Down

 July 2, 2015  Down Payments, First Time Home Buyers, For Buyers

A recent 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 and the number has increased through the first quarter of the year as shown by the graph below:

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, the average FICO scores of approved conventional and FHA mortgages are much lower:

Bottom Line

If you are a prospective purchaser who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able’, let's get together and discuss your options.

DON'T HOLD OFF THINKING YOU NEED PERFECT CREDIT TO BUY A HOME

Despite what you may hear on the news, you don't need perfect credit or a large down payment to buy a home today.

Some Highlights:

• The average FICO score of Approved Conventional Loans was 757 in May
• The average FICO score of Approved FHA Loans was 688 in May
• Since April 2013, the ability of Americans to obtain a mortgage has increased substantially!

When you are interested in how this applies to your unique situation, please call text or email.