You Do Not Need 20 Down Payment To Buy A Home

Dated: 04/03/2017

Views: 199

Again... You Do Not Need 20% Down to Buy NOW!

Again… You Do Not Need 20% Down to Buy NOW! | Keeping Current Matters 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. Again… You Do Not Need 20% Down to Buy NOW! | Keeping Current Matters

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, we'd love to visit with you about your options.  You can visit us online at www.MortgageXLoan.com to explore some of our programs.  Ready to go give us a call 972-668-(LOAN).

Want to Advertise on this Site?

Latest Blog Posts

Staged Homes Sell Faster And For More Money

The selling season is upon us.  So much inventory for buyers to choose from now, what draws their attention?  It's important when selling your home to be able to distinguish your home from

Read More

4 Tips For Makings A Competitive Offer

So, you’ve been searching for that perfect house to call ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you

Read More

Benefits Of A 20 Percent Down Payment

If 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 will tell you that you

Read More

5 Reasons To Sell Your House This Spring

Here are five compelling reasons listing your home for sale this spring makes sense.1. Demand Is StrongThe latest Buyer Traffic Index from the National Association of Realtors 

Read More