2 Major Myths Holding Back Home Buyers

2 Major Myths Holding Back Home Buyers | Simplifying The Market

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 | Simplifying The Market

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.

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2100 N Trekell Road Unit 13 Casa Grande, AZ 85122

$17,500
2 Beds
2 Baths
720 SqFt
Status Active
MLS # 5913528
Property Type Mfg/mobile Housing
This beautiful home has updated flooring and a fantastic kitchen. The addition also has an easily accessible bathroom which is perfect for guests! Outside is a large carport, storage shed and private yard. Come see this home today!

6832 W Fillmore Street Unit 174 Phoenix, AZ 85043

$17,500
2 Beds
2 Baths
840 SqFt
Status Active
MLS # 5895420
Property Type Mfg/mobile Housing
Welcome to San Estrella! New Improvements, New Price!Seller Financing/Rent-to-Own ALERT!!! - with minimum $3000 Down, own your own home in 5-10 years. The Inside: With a full 2 beds and 2 baths, move you and your family into this great location with full laundry room, dining room, kitchen, and living room. With wood style flooring, more than enough cabinets, and stove. You can't go wrong, and that is just the inside! The Outside: Enjoy the perks of having 2 carports! Brand New Air Conditioner, Water Heater, and Furnace - (Almost $10,000 estimated value)!!! The Community: Clubhouse, Fitness room, and massive pool with Jacuzzi. A wonderful gated community, with a night security guard to keep you safe.

2501 W Wickenburg Way Unit 237 Wickenburg, AZ 85390

$16,000
1 Bed
1 Bath
580 SqFt
Status Active
MLS # 5922694
Property Type Mfg/mobile Housing
Fully Furnished in this great 55+ community! Well kept and immaculate home with washer, dryer, full open kitchen and large living room! Master bedroom is very large with ample storage space! Linen closet and storage throughout make this Home the best priced home in Wickenburg. West park is a fabulous community, with many features, community social events, gym, Car Wash, Heated Pool, Library, cox cable included in lot rent.Westpark community has an active calendar of events and outings. Lot Rent is $492 a month and includes water, trash, sewer, internet and cable!!

11411 N 91st Avenue Unit 106 Peoria, AZ 85345

$14,900 - 2Br/2Ba -  for Sale in Casa Del Sol West, A 55+ Community, Peoria
New
$14,900
2 Beds
2 Baths
980 SqFt
Status Active
MLS # 5929744
Property Type Mfg/mobile Housing
Cozy, super clean split 2bd 2ba in 55+ Community. WHY RENT WHEN YOU CAN BUY.Home Sweet Home!!! This 14x70 2 bedroom is priced to sell and ready to call Home! Located in a very desirable Gated 55+ Resort Park, steps to Clubhouse and Pool!HOME FEATURES INCLUDE: Bright Living Room Spacious Kitchen, GAS Stove, Refrigerator, Dishwasher Spacious Master Bedroom with Private Bathroom Indoor Washer & Dryer Central Air Conditioning Steps to Pool and Clubhouse Shady Porch with Gigantic Storage Drawer Large Storage Shed, Second Storage Shed Covered 2-Car Carport RENT TO OWN PROGRAM AVAILABLE-Easy Qualification -Accept Cash as a source of Income -Low Down -Low Monthly Payments

11411 N 91st Avenue Unit 214 Peoria, AZ 85345

$14,900
2 Beds
1 Bath
728 SqFt
Status Active
MLS # 5921607
Property Type Mfg/mobile Housing
This spacious 14'x52' 2 bd. 1 ba. is a real bargain. Make this Sweet Home Yours! WHY RENT WHEN YOU CAN BUY.-2 spacious Bedrooms-Large Kitchen with GAS range, dishwasher, garbage disposal and refrigerator - Newer Appliances, Flooring and Paint -Central Air and Heat -Washer Dryer -Large covered Deck -Covered carport -Partially Fenced Large Pie-shaped LotRENT TO OWN PROGRAM AVAILABLE-Easy Qualification -Accept Cash as a source of Income -Low Down -Low Monthly Payments

2100 N Trekell Road Unit 133 Casa Grande, AZ 85122

$14,500
2 Beds
1 Bath
910 SqFt
Status Active
MLS # 5896920
Property Type Mfg/mobile Housing
This home is a must see! Brand new flooring throughout, fresh paint and renovated bathroom. The full length patio is the perfect place to have your morning coffee. Located in Casa Verde Estates, this home is ready to move into and enjoy.

5201 W Camelback Road Unit Fp217 Phoenix, AZ 85031

$11,000
2 Beds
1 Bath
720 SqFt
Status Active
MLS # 5911953
Property Type Mfg/mobile Housing
You will enjoy the great amenities in this great 55+ Park. This 2 bedroom 1 bathroom home. A super cute home, and a bargain to boot! This adorable place could be either your primary home or your Arizona getaway! Live here with all the great amenities to enjoy. Heated pools and spas, or enjoy your days playing pool or reading from the vast library. The walking and biking path winds through the community. The water and sewer are also included in the lot rent! Garbage pickup is only $12 a month! This place is bargain paradise! The spacious home is super cute and well maintained. The park is in the process of getting new pavement throughout the park.

4065 E University Drive Unit 244 Mesa, AZ 85205

$8,900 - 2Br/1Ba -  for Sale in Citrus Gardens Mobile Home Park, Mesa
New
$8,900
2 Beds
1 Bath
720 SqFt
Status Active
MLS # 5929727
Property Type Mfg/mobile Housing
Here;s your cute little house in a 55+ park with everything you need except your clothes and toothbrush. It even has a shed with washer and dryer and a very long drive way. The stove and oven are gas. You wont have any cleaning to do. It is sold ''as is'' but it IS bright and fully furnished. and the bedrooms are separated by the bathroom. Enjoy fresh lemons and grapefruit from your backyard trees in season. Citrus Gardens has plenty of activities including a fitness center, two swimming pools, a spa, two clubhouses ,billiard room ,library, computer room with internet, the clubhouses host card games, pot lucks, and lots more fun. Come and see it, you'll like it!

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