What You Really Need to Qualify For A Mortgage In Sarasota

Sarasota Piggy Bank

A recent survey by Ipsos found that the American public is still somewhat confused about what is actually necessary to qualify for a home mortgage loan in today’s housing market. The study pointed out two major misconceptions that we want to address today.

1. Down Payment

The survey revealed that consumers overestimate the down payment funds needed to qualify for a home loan. According to the report, 36% think a 20% down payment is always required. In actuality, there are many loans written with a down payment of 5% or less. FHA backed loans will let you qualify with as little as 3.5% down. You always want to remember you will still need extra cash to cover closing costs, taxes and insurance. Typically you will want to have another 3% to cover these costs. 

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

Millennial home buyer graph Sarasota

2. FICO Scores

The Ipsos survey also reported that two-thirds of the respondents believe they need a very good credit score to buy a home, with 45 percent thinking a “good credit score” is over 780. In actuality, the average FICO scores of approved conventional and FHA mortgages are much lower. We have programs available to scores as low as 580. If you have any questions contact us. You may be able to purchase your dream home in Sarasota or Lakewood Ranch and not even know it. 

Below are the numbers from the latest Ellie Mae report.

Average FICO Scores Sarsaota Florida

Bottom Line

If you are a prospective purchaser who is ‘ready’ and ‘willing’ to buy but not sure if you are also ‘able,’ sit down with someone who can help you understand your true options. There maybe programs and options out there that you didn't even know exist.