Buying A HOME Myths About Mortgages

Dated: January 15 2019

Views: 133

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

Credit Tips To Get On The Right Path

Tip #1 ON- TIME  Paymentsstart today and commit to making every single payment on time, even if its just the minimum paymentset up a reminder in your phone, computer or pad and paper (2) weeks

Read More

Looking To Buy A HOME Even If Your Credit Is Not The Best We Can Help You

This is your Chance!!!  I want you to know that we want to help you get a HOME So we not only partner with the best but have the best right here for you!!we have lenders that will get

Read More

Thinking About Buying A HOME We Want You To Get The Most Equity Out Of A HOME

Want to Make a Move? Homeowner Equity is Growing Year-Over-YearOne of the bright spots of the 2020 real estate market is the growth in equity homeowners are experiencing across the country.

Read More

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