The NEW Rules of Real Estate: You DO NOT Need 20% Down

by Hilton Head Real Estate Partners July 09, 2015 0 comments
Buyer Resource, Buying a home, Buying a house, Financing, First time home buyer, Home Buyer Resources

Spring-Home-Green

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 actuality, 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:

Low-Down-Payment

 

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:

FICO-Scores

 

Bottom Line

If you are a prospective buyer who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able’, give us a call. We can help you understand the options available to make home ownership a reality!

Jo Anne or Tony Rizza – 843-301-5825

Hilton Head Real Estate Partners
Partnering with you every step of the way.
source: Keeping Current Matters

 

by Hilton Head Real Estate Partners July 09, 2015 0 comments
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