A 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 actually, 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:
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:
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.
"We Work for You" The team at Ocean400 has a rich history of serving people. We are dedicated to accomplishing every task for our clients. We are your one-stop real estate solution.
To Discuss the Purchase of Your Dream Home Call/Text Me at 561-886-7476 (no obligation to Buy) and Start Packing.
Ryan Critch, The Real Estate Expert
CEO Ocean400 International Realty