Buy a House with a down payment of 3%!
A survey by Ipsos found that the American public is still somewhat confused about what is required to buy a house or how 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 buy a house. According to the report, 40% of consumers think a 20% down payment is always required. In actuality, there are many mortgage loans written with a down payment of 3%.
Many renters may actually be able to enter the housing market sooner than they ever imagined with new mortgage loan programs that have emerged allowing less cash out of pocket.
2. Credit FICO® Scores
The survey also revealed that 62% of respondents believe they need excellent credit score to buy a house, with 43% thinking a “good credit score” is over 780. In actuality, the average FICO® scores of approved conventional and FHA mortgage loans 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.
If you are a prospective home buyer who is ‘ready’ and ‘willing’ to act now, but are not sure if you are ‘able’ to, or would like to know more about available homes for sale in Lake Balboa or any other San Fernando or Santa Clarita Valley real estate, please contact the real estate professional agents at HelpUSell Southland Realty today!
Looking to Buy a House? Homes sold in the last 30 days in Lake Balboa, Van Nuys, Valley Glen, Reseda, Encino, Northridge, Granada Hills, North Hills and Porter Ranch, CA.
Enter location, neighborhood, city or zip code to search homes sold in your area in the last 60 days.