Fannie Mae’s “What do consumers know about the Mortgage Qualification Criteria?” Study revealed that Connecticut buyers are misinformed about what is required to qualify for a mortgage when purchasing a home.

Myth #1: “I Need a 20% Down Payment”

Connecticut buyers overestimate the down payment funds needed to qualify for a home loan. According to the report, 76% of them either don’t know (40%) or are misinformed (36%) about the minimum down payment required.

Many believe that they need at least 20% down to buy their dream CT home. New programs actually let buyers put down as little as 3%.

Below are the results of a Digital Risk survey of CT Millennials who recently purchased a home.

As you can see, 64.2% were able to purchase their home by putting down less than 20%, with 43.8% putting down less than 10%!

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

The survey revealed that 59% of Connecticut buyers either don’t know (54%) or are misinformed (5%) 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 the latest Ellie Mae Origination Insight Report, which focuses on recently closed (approved) loans. As you can see below, 54.1% of approved mortgages had a credit score of 600-749.

Bottom Line

Whether buying your first Connecticut home or moving up to your dream one, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach. Contact a real estate professional at Dave Jones Realty who can assist with any of your Real Estate needs!