Mortgage Myths And Your Qualifications

• 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.

• 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

Bottom Line

“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.”

Call Dawn Borkowski, The Lawton Team of Keller Williams Realty for more information and guidance, (864) 313-4608 or dawn@thelawtonteam.com.