John Hays, Broker/Realtor®
Bainbridge Island, Poulsbo, Silverdale,
Bremerton, Kingston, Port Orchard, Gig Harbor, University Place, North Tacoma
Call or text 206-419-5001
johnhays@cbbain.com
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Certified NFCU and Realogy Military Rewards Broker
Busting Two Myths About Mortgages That May Be Holding You Back
Fannie 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%.
But more than 64% of recent borrowers were able to purchase their home by putting down less than 20%, with nearly 44% 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. The latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans shows that 54.1% of approved mortgages had a credit score of 600-749.
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.