facebook_pixel

Compare Listings

You do NOT Need 20% Down!

20A recent survey by Ipsos found that the American public is still somewhat confused about what is actually necessary to qualify for a home mortgage loan in today’s housing market. The study pointed out 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, 36% think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 3% or less and the number has increased through the first quarter of the year as shown by the graph below:

Low-Down-Payment

2. FICO Scores

The survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. In actuality, the average FICO scores of approved conventional and FHA mortgages are much lower:

FICO-Scores

Bottom Line

If you are a prospective purchaser who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able’, sit down with someone who can help you understand your true options.

img

Jeff Kofahl

Related posts

Should I Invest In Real Estate?

A survey by The Joint Center of Housing Studies at Harvard University reveals that when a family is...

Continue reading
Jeff Kofahl
by Jeff Kofahl

Rent prices UP 6%

Rent prices were up another 6 percent in January after near record increases all of last year....

Continue reading
Jeff Kofahl
by Jeff Kofahl

Are You Smart Enough to go to Harvard?

I will admit that I'm probably not smart enough to get into Harvard but it's really ok.  In order...

Continue reading
Jeff Kofahl
by Jeff Kofahl

Join The Discussion

Skip to toolbar