Down Payments

Dated: 04/03/2017

Views: 47

You Do Not Need 20% Down to Buy NOW!

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’, but are not sure if you are ‘able’ to, I have some great lenders that can help you understand all your options. 



Image title

Colorado Springs Real Estate professional -Christine Sullivan

Christine is a motivated realtor specializing in listings in the Colorado Front Range and new home buyers located in the following areas;Colorado SpringsMonument and surrounding areas. Christine Sullivan uses advanced internet marketing to insure your property gets maximum exposure and will give you a professional edge needed to navigate today's housing market. For help with buying or selling a property call 1-719 660-5801!

Blog author image

Christine Sullivan

I arrived in Colorado Springs for a quick vacation in 1993 and within a few days I knew that this is where I belong! I transferred from the college I had just started attending in Orange County, CA an....

Want to Advertise on this Site?

Latest Blog Posts

5595 Darien Way Open House Saturday

     OPEN HOUSE       FEBRUARY 24th      10AM-2PMThis one of a kind home nestled in Mountain Shadows will capture your heart the moment you step

Read More

5595 Darien Way

http://brittany.denverhomesearchnow.com/details.php?mls=30&mlsid=6464016&ppc=&noreg

Read More

4 Tips To Get Approved For A Mortgage As A Sole Proprietor

Flexible hours, unlimited earning potential and no annoying boss? You must like the perks that come with self-employment. Taking your career into your own hands can be extremely rewarding,

Read More

Denver Events

Don't miss out on these upcoming Denver Events.February and March 2018 Denver Events-Start planning now for exciting 2018 events and festivals in Denver. Scroll down our month-by-month list and 

Read More