Real Estate Myth Buster - Down Payment Requirements

Folks have been telling me that they really want to buy a home, but are not aware that it's easier than they imagined.  I tell them that this is the time to buy because:

- Rents continue to skyrocket
- Interest rates are at historic lows
- Available inventory is higher & there are fewer buyers out now
- Sellers are becoming more willing to negotiate, meaning I can get you a great value

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”

FACT:  No, you don't!  

“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.”  

FACT:  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”

FACT:  No, you don't!

According to Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans, 52.4 of approved mortgages had a credit score of 600-749.

You can do this!  I have some very knowledgeable & experience mortgage experts who will work with you to achieve your home goal.  Give me a call, I'm happy to help