Jun 10 2019 37430 1

Dated: 06/10/2019

Views: 18

2 Myths Holding Back Home Buyers | Simplifying The Market

2 Myths Holding Back Home Buyers

   Buying Myths, Down Payments, First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Move-Up Buyers

Freddie Mac recently released a report entitled, “Perceptions of Down Payment Consumer Research.”Their research revealed that,

“For many prospective homebuyers, saving for a down payment is the largest barrier to achieving the goal of homeownership. Part of the challenge for those planning to purchase a home is their perception of how much they will need to save for the down payment…

…Based on our recent survey of individuals planning to purchase a home in the next three years, nearly a third think they need to put more than 20% down.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the funds needed to qualify for a home loan. According to the same report:

22% of renters and 31% of homeowners believe lenders require 20% or more of a home’s sale price as a down payment for a typical mortgage today. And,

“If a 20% down payment was required, 70% of those who were planning to buy a home in the next three years said it would delay them from purchasing and nearly 30% indicated they would never be able to afford a home.”  

While many believe at least 20% down is necessary to buy the home of their dreams, they do not realize programs are available which permit as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined!

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Many either don’t know or are misinformed concerning the FICO® score necessary to qualify, believing a ‘good’ credit score is 780 or higher.

To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.2 Myths Holding Back Home Buyers | Simplifying The MarketAs indicated in the chart above, 52.4% of approved mortgages had a credit score of 600-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.



You might also enjoy reading...

Blog author image

Team H and L Miami

Team H&L Miami @ Real Estate Empire Group is a fast growing boutique Real Estate firm established in 2001. It began to revolutionize property sales as well as marketing through brokers, agents, and an....

Want to Advertise on this Site?

Latest Blog Posts

Jun 16 2019 37430 1

his information is brought to you byHenry & Laly SanzTeam H&L Miami at Real Estate EmpireWill Zero-Energy Homes Change the Future of Real Estate? While trends typically come and go, one

Read More

Jun 15 2019 37430 1

Classic Meets Modern Bathroom Design Inspiration | Nina Hendrickhttps://www.ninahendrick.com - a day ago on June 14th 2019See the inspiration behind a Classic meets Modern Bathroom Design. This

Read More

Jun 13 2019 37430 1

Time for Your Dream Home, Gen X!  Thursday June 13th, 2019  Demographics, For Buyers, For Sellers, Generation X, Housing Market Updates, Move-Up

Read More

Jun 12 2019 37430 1

This information is brought to you byHenry & Laly SanzTeam H&L Miami at Real Estate EmpireHow to Save for Your RetirementHaving a student loan payment each month as a college graduate leaves little

Read More