You DO NOT Need 20 Down To Buy Your Home NOW

Dated: July 10 2018

Views: 467

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The Aspiring Home Buyers Profile from the National Association of Realtors (NAR)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. The results of the survey show that the main reason why non-homeowners do not own their own homes is because they believe that they cannot afford them.

Two Major Misconceptions 

1. Down Payment

A recent survey by Laurel Road, the National Online Lender and FDIC-Insured Bank, revealed that consumers overestimate the down payment funds needed to qualify for a home loan.

According to the survey, 53% of Americans who plan to buy or have already bought a home admit to their concerns about their ability to afford a home in the current market. In addition, 46% are currently unfamiliar with alternative down payment options, and 46% of millennials do not feel confident that they could currently afford a 20% down payment.

What these people don’t realize, however, is that there are many loans written withdown payments 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

An Ipsos survey 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 for approved conventional and FHA mortgages are much lower.

The average conventional loan closed in May had a credit score of 753, while FHA mortgages closed with an average score of 676. The average across all loans closed in May was 724.The chart below shows the distribution of FICO®Scores for all loans approved in May.


Bottom Line

If you are a prospective buyer who is ‘Ready’ and ‘Willing’ to act now, but you are not sure if you are ‘able’ to, sit down with a professional who can help you understand your true options today.


Interested in Buying or Selling a Home/Investment Property? 

Please contact me anytime for a Free Market Value Analysis. 

http://christina.buyinginaustin.com/ 

  Download my app to search for properties by texting 'Christina' to 512-270-7326


 Christina Haverty 

 REALTOR®, GREEN, GRI, CNE 

 512 693 8604 office /512 632 3162 cell 

 http://christina.buyinginaustin.com/ 

 Turning Savvy, Informed Austin Area Urbanites into Successful Homeowners, Investors, Sellers and Leaser’s!

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Christina Haverty

Turning Savvy, Informed Austin Area Urbanites into Successful Homeowners, Investors, Sellers and Leaser’s!....

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