While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a little research, many renters may be able to enter the housing market sooner than they ever imagined. Myth #2: “I Need a 780 FICO® Score or Higher” In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing they need a credit score of 780 or higher. Ellie Mae’s latest Origination Insight Report , which focuses on recently closed (approved) loans, shows the truth is, over 50% of approved loans were granted with a FICO® score below 750.
FICO ® Score Distribution
500-549 550-599 600-649 650-699 700-749 750-799 800+
All Closed Loans as per Ellie Mae
Even today, many of the myths of the homebuying process are unfortunately keeping plenty of motivated buyers on the sidelines. In reality, it really doesn’t have to be that way. Bottom Line Don’t let any common myths keep you out of the housing market. You may have more options than you think, and a trusted real estate professional can help you along the way. 16
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