2 Myths That May Be Holding Back Buyers

Dated: 02/01/2017

Views: 208

Image title


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%.

How Much Down Pyment do I need


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.

Image title


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 your reach.


Latest Blog Posts

Low Inventory Causes Home Prices In Portland To Maintain Fast Growth

Low Inventory Causes Home Prices to Maintain Fast GrowthThe National Association of Realtors (NAR) released their latest Quarterly Metro Home Price Report last week. The

Read More

Now May Be The Time To Move Up To A Luxury Home

Moving-Up to a Luxury Home? Now’s the Time!Luxury Home in our Service Area. If your house no longer fits your needs and you are planning on buying a luxury home, now is a great time to do so!

Read More

How To Get The Most Money From The Sale Of Your Home

How to Get the Most Money from the Sale of Your HomeEvery homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum

Read More

4 Reasons To Buy A Home This Fall In Oregon

4 Reasons to Buy a Home This Fall in Oregon!Here are four great reasons to consider buying a home today, instead of waiting.1. Prices Will Continue to RiseCoreLogic’s latest Home Price

Read More