Top Days to List Your Home for SaleSome Highlights: ATTOM Data Solutions conducted an analysis of more than 29 million single-family home and condo sales over the past eight years
You Do Not Need 20 Percent Down To Buy NOW
Dated: April 13 2017
Views: 430
Again… You Do Not Need 20% Down to Buy NOW!
A survey by Ipsos 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. There are 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, 40% of consumers think a 20% down payment is always required. In actuality, there are many loans written with a down payment 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
The survey also 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 of approved conventional and FHA mortgages are much lower.
The average conventional loan closed in February had a credit score of 752, while FHA mortgages closed with a score of 686. The average across all loans closed in February was 720. The chart below shows the distribution of FICO®Scores for all loans approved in February.
Bottom Line
If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, let’s sit down to help you understand your true options. Call me today and let's get you in that dream home! 251-269-0299
Latest Blog Posts
A Lack of Inventory Continues to Impact the Housing MarketThe housing crisis is finally in the rear-view mirror as the real estate market moves down the road to a complete recovery. Home values are
The Benefits of a 20% Down PaymentIf you are in the market to buy a home this year, you may be confused about how much money you need to come up with for your down payment. Many people you talk to
Home Buyers are Optimistic About Homeownership!When we consider buying an item, we naturally go through a research process prior to making our decision. We ask our friends and family members who
All information is believed to be accurate but is not guaranteed. Protected by Copyright© 2021 and is owned either by the Mobile Area Association of REALTORS; or by the developers of the software, Kunversion, LLC. All rights reserved.
Baldwin County Association Of Realtors®: All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may
