One More Time 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 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.
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 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, theaverage FICO scores of approved conventional and FHA mortgages are much lower.
The average conventional loan closed in March had a credit score of 753, while FHA mortgages closed with a 685 score. The average across all loans closed in March was 722. The graph below shows how the average FICO Score required has come down over the last 12 months and has stayed around 722 for the last six months.
If you are a prospective buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, sit down with a professional who can help you understand your true options.
Bill is a motivated realtor specializing with investors, new home buyers, and move up buyers located in the following areas;Anna Maria Bradenton Bradenton Beach Cortez Ellenton Englewood Holmes Beach Lakewood Ranch Lakewood Rch Longboat Key Myakka City Nokomis North Port North Venice Osprey Palmetto Parrish Sarasota Siesta Key Terra CeiaUniversity Park Venice and surrounding areas. If your a buyer check out our Buyers Advantage Program designed to protect the interest of our buyers at all cost. Bill Burg uses advanced internet marketing to insure your property gets maximum exposure and holds a high value of ethics in his work to ensure the ideal scenario for everyone! I am so confident in our ability to sell your home "I GUARANTEE it". Find out about Seller Guarantee. For help with buying or selling a property call 941-444-0010!
Hi, Bill is the founder of the Burg Realty Group and is licensed in 2 states and he is involved in business success coaching with businesses all across the United States. Helping them grow their bus....
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