Do you want content like this delivered to your inbox?
Share
Share

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

Russell Bryant

With over 7 years of experience in the Real Estate Industry and over 20 years experience with business systems, graphics design, advertising, sales an...

With over 7 years of experience in the Real Estate Industry and over 20 years experience with business systems, graphics design, advertising, sales an...

May 10 2 minutes read


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

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! | MyKCM

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.

Have a question?

Schedule a 1 on 1 Consultation with Nuvia

We use cookies to enhance your browsing experience and deliver our services. By continuing to visit this site, you agree to our use of cookies. More info

Free CE/PLE CoursesOur real estate firm has teamed up with Moseley Real Estate Schools!
Moseley has been training students in the real estate industry since 1972 and offers real estate education for Salesperson Licensing, Broker Licensing, Continuing Education, and Post License Education. Sign up for a licensing course with our Sponsor Discount or check out their FREE CE/PLE today!