Buying A HOME Myths About Mortgages

Dated: 01/15/2019

Views: 123

Debunking Some Myths about Mortgage Availability

Debunking Some Myths about Mortgage Availability | Simplifying The Market

There seems to be a growing chasm between what the public believes to be needed and what is actually needed to qualify for a residential home loan.

A recent survey by Ipsos reported that:

  • Two-thirds of those surveyed believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780.

  • Consumers overestimate the down payment funds needed to qualify for a home loan, with 36 percent thinking a 20 percent down payment is always required.

However, according to American Enterprise Institute’s International Center on Housing Risk’s May First-Time Buyer Mortgage Risk Index (FBMRI), reality is far from perception. The report reveals:

  • 70% of first-time buyer mortgages had a combined loan-to-value ratio of 95% or higher

  • About 20% of first-time buyers taking out mortgages had a FICO score below 660

  • 25% had total debt-to-income ratios above 43 percent

  • The median first-time buyer with an agency mortgage made a down payment of only 3 percent, or $7200 in dollar terms.

  • The median FICO score for first-time buyers with agency mortgages was 705

  • For first-time buyers with FHA-insured loans, the median FICO score was only 672

These numbers contradict the frequent claims that first-time buyers face difficulties in obtaining mortgages.

Bottom Line

Stephen Oliner, co-director of AEI’s International Center on Housing Risk explained the reality of the situation.

“One hears all the time that first-time buyers have limited access to mortgage debt.  But this isn’t true. Many first-time buyers with low FICO scores and little money down are buying homes every month.”      


Our Bottom line/  We help you with your Credit often in 30-90 days to purchase even if your in the 400-500 range! FREE!! Call 330-412-9799 or 330-412-7413 

Then we get you preapproved with lower credit scores then any other banks.  Save you tons of money/out pocket expenses!! SO what are you waiting for!   😯                       

Blog author image

Ann Norton

I am dedicated to you! I will give you a 100% all of the time day or night! I will get you the house you want for the price you want! I will sell your house and get it done quickly! I think outside th....

Want to Advertise on this Site?

Latest Blog Posts

Easy Fast PreApproval

Want to be Pre-Approved👀? Need more info🤷‍♀️? We want to help you have the first steps to purchase a HOME! we help you not only be ready📃but be CREDIT READY...

Read More

Getting Ready To Sell Be Sure To Do These 10 Things

Summer is the New Spring for Real Estate  Some Highlights The health crisis slowed the market this spring, so buyers are jumping back into the market to make their moves this summer.

Read More

We Have Your Answers To Get Out Of Debt Fast And Buy A Home

6 things to get out DEBT and buy a HOME!!!1. Study your spending Habits2. Eliminate your biggest debt first3. Lower your interest rates4. Estabish an emergency fund5. stop adding to your debt6. cut

Read More

What Information Do You Need To Make A Offer On A Home

Ever wonder what you need to have to make a offer on a home? We have the info you need!! Any questions please reach out and we are here to help you!We offer Free credit repair😲😲We offer

Read More