2 Myths That May Be Holding Back Buyers

If you are thinking of buying but think you need more money down, a higher credit score or a better job checking out these statistics might be the answer.  Many people gbuy homes with less than 3.5% downpayment or even, in some cases, no downpayment.  Your credit score can be just over 600 and you still might qualify!  Interested?  Take a look at these graphs and then give me a call.  Homeownership may not be that far away.

Courtesy of Keeping Current Matters January 2017

2 Myths That May Be Holding Back Buyers | MyKCM

Fannie Mae’s article, “What Consumers (Don’t) Know About Mortgage Qualification Criteria, revealed that “only 5 to 16 percent of respondents know the correct ranges for key mortgage qualification criteria.

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, but many 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.

2 Myths That May Be Holding Back Buyers | MyKCM

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.

To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.7% of approved mortgages had a credit score of 600-749.

2 Myths That May Be Holding Back Buyers | MyKCM

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within reach.

Remember it is always toasty in Naples and your new home may be closer than you think!  Call me and let’s talk to the excellent mortgage brokers I know to get approval and then get started on your new home search.

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