Let’s Say it Again, You Don’t Need a 20% Down Payment!

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We’ve been hearing throughout our lives that 20% down is the only way to buy a home. Not so fast! According to a recent survey done by Ipsos, the American public was found to still be a little confused about what is actually necessary to qualify for a home mortgage loan. The study pointed out two major misconceptions which we will address.

  1. Down Payment. According to the survey, consumers overestimate the down payment funds needed to qualify for a home loan. The survey revealed that 36% think a 20% down payment is always required, when in fact there are many loans written with a down payment of 3% or less.

Talk to a Wisconsin Mortgage Loan Officer today to find out more about your options. Many renters can head into the housing market sooner than they think!

  1. FICO Scores. The survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home. 45% percent thought that a good credit score is over 780. In reality, the average FICO score of approved conventional and FHA mortgages are much lower.

The graph below shows that the average FICO score required has come down over the last 12 months and has stayed around 722 for the past six months.

FICO-Score

Bottom Line: If you are a prospective buyer who is ready and willing to act now, but are not sure if you are able, sit down with a Shorewest, REALTOR® and a Wisconsin Mortgage Loan Officer who can help you understand your true options! #ShorewestRealtors #BuyingHomes #HousingMarket #HomeMortgage

Source Credit: Keeping Current Matters

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Categories: First Time Home Buyers, Home Buying, Homeowner, How to, Monday Motivation, Mortgage

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