Myth #1: “I Need a 20% Down Payment”
A survey by Fannie Mae revealed that consumers overestimate the down payment they would need in order to qualify for a home loan. According to the report, 76% of Americans are either misinformed (36%) or don’t know (40%) about the minimum down payment required.
Most think they need to provide at least 20% down if they are to buy their dream home. However, many programs allow buyer to put down as little as 3%.
Digital Risk survey of Millennials who recently purchased a home:
64.2% were able to purchase their home with less than 20%, while 43.8% had less than 10%!
Myth #2: “I need at least a 780 FICO Score to Buy”
Fannie Mae's survey revealed that 59% of Americans are either misinformed (5%) or don’t know (54%) what FICO score is needed to qualify.
A good credit score is typically thought of as 780 or higher.
Ellie Mae’s latest Origination Insight Report, focuses on recently closed (approved) loans.
According the above information, 54.7% of approved mortgages had a credit score above 600 and below the 749 mark.
Understanding your options will make the mortgage process that much easier. Your dream home may already be within your reach.