Myth #1: “I Need a 20% Down Payment”
Every buyer is different. Down payments vary from 0-20%. Talking with a lender will determine exactly what you can put down. One of the most frequent programs I use with first time home buyers is a 3.5% down FHA loan. Another program I use frequently with veterans is the 0% VA loan. Both are fantastic loans that give first time home buyers the opportunity to start their journey as a home owner.
Myth #2: “I Need a 780 FICO® Score 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.
If your goal is home ownership, don’t let these myths hold you back. Every buyer is unique and the best myth buster is to sit down with a real estate agent and lender and create a specific plan for you.