• Skip to primary navigation
  • Skip to content
  • Skip to primary sidebar
  • Skip to footer

Sacramento Real Estate with Chrysti Tovani #yourfairoaksagent

Delivering the dream of owning a home.

  • Home
  • About
  • Selling
  • Home Evaluation
  • Buying
    • Open House Feedback
  • Blog
  • Contact

2 Myths Holding Back Home Buyers

November 5, 2018 By Chrysti Tovani Leave a Comment

breaking chains

Urban Institute recently released a report entitled, “Barriers to Accessing Homeownership: Down Payment, Credit, and Affordability,” which revealed that,

“Consumers often think they need to put more money down to purchase a home than is actually required. In a 2017 survey, 68% of renters cited saving for a down payment as an obstacle to homeownership. Thirty-nine percent of renters believe that more than 20% is needed for a down payment and many renters are unaware of low–down payment programs.”

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:

“Most potential homebuyers are largely unaware that there are low-down payment and no-down payment assistance programs available at the local, state, and federal levels to help eligible borrowers secure an affordable down payment.”  

These numbers do not differ much between non-owners and homeowners. For example, “30% of homeowners and 39% of renters believe that you need more than 20 percent for a down payment.”

While many believe that they need at least 20% down to buy their dream homes, they do not realize that there are programs available which 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.

fico score graph

As you can see in the chart above, 51.7% 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.

Source: Keeping Current Matters

 

DISCLAIMER: The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Chrysti Tovani and eXp Realty of California Inc. do not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Chrysti Tovani and eXp Realty of California Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.

Filed Under: Buying Myths, Down Payments, First Time Buyers, For Buyers

Chrysti Tovani

Delivering the dream of owning a home. I'm here to support you, help you, and make your life a whole lot easier. My goal is to make selling or buying your home as stress-free as possible. Even fun! I will prepare you for a successful closing, masterfully negotiate on your behalf, and be by your side through every step of our real estate journey together. I believe everyone should feel confident and cared for while they're making big decisions. I'm your advisor, protector, hand holder, cheerleader, marketing expert, and friend. I'm a second generation Realtor® with real estate lending experience here at your service. I'd love to be your Realtor® when you're ready.

« The Difference an Hour Will Make This Fall [INFOGRAPHIC]
5 Tips When Buying a Newly Constructed Home »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Let’s Connect

  • Facebook
  • Instagram
  • Pinterest
  • Twitter

Brokered By

exp realty logo

Chrysti Tovani, Realtor® DRE#01118449

Chrysti Tovani

Delivering the dream of owning a home. I'm here to support you, help you, and make your life a whole lot easier. My goal is to make selling or buying your home as stress-free as possible. Even fun! I will prepare you for a successful closing, masterfully negotiate on your behalf, and be by your side through every step of our real estate journey together. I believe everyone should feel confident and cared for while they're making big decisions. I'm your advisor, protector, hand holder, cheerleader, marketing expert, and friend. I'm a second generation Realtor® with real estate lending experience here at your service. I'd love to be your Realtor® when you're ready.

Recent Posts

  • Existing Home Sales Slowed by a Lack of Listings [INFOGRAPHIC]
  • Thank You for Your Support!
  • Will Your Side Hustle Buy You a House This Year?
  • Females Are Making It a Priority to Invest in Real Estate!
  • 7 Reasons to List Your House For Sale This Holiday Season
  • The Cost of Renting vs. Buying a Home [INFOGRAPHIC]
  • Wage Increases Make Home Buying More Affordable
  • Home Sellers in Q3 Netted $61K at Resale
  • Are Homeowners Renovating to Sell or to Stay?
  • How to Honor a Veteran Today and Everyday
  • VA Home Loans by the Numbers [INFOGRAPHIC]
  • 75% of Renters Have Been Misinformed
  • Why Has Housing Supply Increased as Sales Have Slowed Down?
  • 5 Tips When Buying a Newly Constructed Home
  • 2 Myths Holding Back Home Buyers
  • The Difference an Hour Will Make This Fall [INFOGRAPHIC]
  • How Will Home Sales Measure Up Next Year?
  • Taking Fear Out of the Mortgage Process
  • Are You Spending TOO Much on Rent?
  • Thinking of Selling Your Home? Here’s Why You Need A Pro in Your Corner

Search

Footer

Chrysti Tovani, Realtor ®
DRE #: 01118449
Office: 916-572-8682
chrysti.tovani@exprealty.com

  • Facebook
  • Instagram
  • Linkedin
  • Pinterest
  • Twitter

eXp Realty of California Inc.
2603 Camino Ramon
Suite 200
San Ramon, CA 94583

DRE#01878277

I am physically located in Sacramento, CA area.

exp logo

  • Careers at Exp Realty
  • Sacramento Real Estate Blog
  • Open House Feedback
  • Terms of Use
  • Privacy Policy
  • Fair Housing Statement

© Copyright 2018 Chrysti Tovani · Sactown Market · All Rights Reserved · Real Estate Agent Cal BRE# 01118449 · Licensed with eXprealty · Terms · Privacy