Tuesday, August 23, 2016

2 Myths About #mortgages That May Be Holding Back Buyers

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%.

Below are the results of a Digital Risk survey of Millennials who recently purchased a home.

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 the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 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. http://www.simplifyingthemarket.com/en/2016/08/23/2-myths-about-mortgages-that-may-be-holding-back-buyers/?a=242769-4eb2112ad1caac540e99a63dd199d5ed ❤️ #share #mortgage



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