Again You Do Not Need 20 Percent Down To Buy NOW

Again You Do Not Need 20 Percent Down To Buy NOW

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

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! | Simplifying The Market

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.


Derrick Houston Headshot
Author:
Phone: 214-385-1221
Dated: April 3rd 2017
Views: 46
About Derrick: Derrick has been in real estate for seven years. Before embarking on a career in real estate, Derric...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Why Start An Airbnb Rental - By Heath OlingerDALLAS, TX. –
What Are The Mistakes That First Time Home Buyers Make - By Heath OlingerAre you planning
5 Reasons To Hire A Real Estate Professional When Buying Or Selling - Whether you are buying or 
Why Americans Consider Moving To Another State - Some Highlights: In a recent 

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Rogers Healy and Associates
4925 Greenville Ave. #360
Dallas, TX
214-238-8589