2 Major Myths Holding Back Home Buyers In Citrus County

2 Major Myths Holding Back Home Buyers | MyKCM

Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership,” which revealed that eighty percent of consumers either are unaware of how much lenders require for a down payment or believe all lenders require a down payment above 5 percent.”

Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate the down payment funds needed to qualify for a home loan. According to the same report:

Consumers are often unaware of the option to take out low-down-payment mortgages. Only 19% of consumers believe lenders would make loans with a down payment of 5% or less… While 15% believe lenders require a 20% down payment, and 30% believe lenders expect a 20% down payment.”

These numbers do not differ much between non-owners and homeowners; 39% of non-owners believe they need more than 20% for a down payment and 30% of homeowners believe they need more than 20% for a down payment.

While many believe that they need at least 20% down to buy their dream home, they do not realize that programs are available that allow them to put down as little as 3%. Many renters may actually be able to enter the housing market sooner than they ever imagined with programs that have emerged allowing less cash out of pocket.

Myth #2: “I Need a 780 FICO® Score or Higher to Buy”

Similar to the down payment, many either don’t know or are misinformed about what FICO® score is necessary to qualify.

Many Americans believe a ‘good’ credit score is 780 or higher.

To help debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.

2 Major Myths Holding Back Home Buyers | MyKCM

As you can see in the chart above, 53.5% of approved mortgages had a credit score of 600-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Your dream home may already be within your reach.

If you are ready to Buy or Sell,  Meet with the The Cunningham Team Team @ RE/MAX Realty One, your local real estate professionals who can help you find your dream home.

For more Citrus County, Florida home selling and buying insights, give The Cunningham Team at RE/MAX Realty One a call anytime to discuss your own real estate plans! If you’re considering a move to the CITRUS COUNTY including Crystal River, Inverness, Homosassa, Beverly Hills, Inglis, Hernando, Lecanto, Citrus Springs or Dunnellon, Give us a call.

The Cunningham Team at RE/MAX Realty One “Your Nature Coast Real Estate Experts”

Kevin, Karen and Brogan The Cunningham Team  

(352) 527-7842

Click Here To Contact US

About TeamCitrusRE

The Cunningham Team – “Knows Citrus County” Kevin, Karen and Brogan Cunningham “Change is the common Thread that ties ones life to another by deliberate or accidental means” Because life is about change, you need a team you can trust to carefully orchestrate your most important transitions. When it involves Real Estate, The Cunningham Team shares a wealth of experience, articulate business prowess and personalities that exudes confidence in any situation. The Cunningham Team has established an impressive reputation among their peers and clientele as a knowledgeable resource for anything involving real estate in Citrus County. Also Business people interested in expansion, and or development of new business ventures within Citrus County look to our knowledge and insight as reliable resource for current market conditions. While attaining some of the highest honors given to business leaders in Citrus County, Kevin and Karen never forget that their clients are the key to their success. The extra hours, careful listening and honest evaluations of the marketplace, are a part of the consistently high standard of attention you will receive from the Cunningham’s . As a husband to wife Karen, and father to children, Courtney, Brogan, and Katelyn, Kevin maintains a delicate balance between work, play and community service. Alone, or as a family, Kevin enjoys the staples of Florida Nature Coast living; fishing, scalloping, golfing, and diving. Undoubtedly, you will face transitions in your life – when they involve Real Estate and a place to call home, think of Kevin Cunningham….. Professional stability in a climate of change
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