A survey by Ipsos found that the American public is still somewhat confused about what is required to qualify for a home mortgage loan in today’s housing market. There are 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, 40% of consumers think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less.
Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.
2. FICO® Scores
The survey also revealed that 62% of respondents believe they need excellent credit to buy a home, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores of approved conventional and FHA mortgages are much lower.
The average conventional loan closed in February had a credit score of 752, while FHA mortgages closed with a score of 686. The average across all loans closed in February was 720. The chart below shows the distribution of FICO® Scores for all loans approved in February.
If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, let’s sit down to help you understand your true options.
Author:Heather F Davidson Phone: 609-209-7581 Dated: April 4th 2017 Views: 86 About Heather: I'm an agent whose business is built on the promise of exceptional customer service. If you are sel...
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Specialties: Buyer's Agent, Listing Agent, Relocation, Short-Sale
I'm an agent whose business is built on the promise of exceptional customer service. If you are selling your home or searching for that special place to call your own, you deserve to work with someone you trust-someone who you know has your best interests in mind. Whatever your particular Real Estate need, I'll work hard to make sure that you are completely satisfied. I have the knowledge, experience, and dedication that it takes to get results.
We hope 2018 is a great year for you, both personally and
"I have worked with Heather on several home purchases now, as well as rentals on another property. Heather is very knowledgable and quick to point out both the good and bad features of a property as well as potential upgrades or solutions to issues. I had a very specific set of requirements for this home. I'm a single dad on a budget, yet I was not going to shortchange my kids of a home with the space we needed to be comfortable and grow, both inside and out. We saw A LOT of properties trying to find the right blend of features, price and required upgrades. I wasn't foolish enough to think I would get everything I was looking for, for a good price, in move-in condition. I knew I would need to do some updating myself, but I also had to be able to move in and live there with the kids, so it couldn't be a total rehab project. Heather was great about responding to my many questions and emails and requests for property info at all hours of the day. She was also great setting up showings and working with my busy work schedule and having to bring my daughter along on almost all of our viewings. I would certainly recommend Heather for anyone's home buying or selling needs and I, myself would use her again. Though I do Intesn to stay put for quite some time now"