Many wanna-be home buyers in Roseburg are perplexed at the home buying process. Often times they are plainly misguided, misinformed, and mislead when it comes to what it takes to buy a home.
The reality is, people tend to believe what they are told, whether it’s by a well-intended uncle or a post on their Facebook news feed.
However, if you really want to know what it takes to buy a home, the best source is a local real estate professional like me.
Myth #1: I Need Awesome Credit To Buy A Home
The fist myth I run into often hast to do with the credit score. There are so many people in Roseburg who don’t even try to buy a house because of some past credit problem. Hey, if you don’t ask, you won’t know.
A recent survey showed that well over half (59%) of Americans have absolutely no idea what their credit score needs to be in order to qualify for a mortgage.
Not only that, but many others think that their FICO score needs to be well over 700 to qualify, and that is just not true. In fact, I have helped many wanna-be homeowners buy a home with marginal credit.
Minimum FICO Score Needed To Qualify:
- Fannie Mae/Freddie Mac: 620 Minimum FICO score.
- FHA: Technically 500 is the minimum FICO score, but most lenders require a score of 620-640 to qualify. for a 3.5% down FHA loan.
- VA. Minimum credit score varies from lender to lender, but most will require at least a 620 FICO score.
- USDA. Most USDA lenders require a 640 minimum FICO score.
Myth #2: I Need A Huge Down Payment To Buy A House
The second myth that I run into is the misunderstanding about how much down payment is required to buy a house. Did you know that it is possible to buy a home with little or no money out of your pocket?
According to Fannie Mae, almost 80% of Americans do not know how much down payment is required to buy a home. Many mistakenly believe you need 20% down to buy. Again, not true.
Minimum Down Payment Needed To Buy A Home In Roseburg OR.
- Fannie Mae: 3% down.
- Freddie Mac: 3%-20% down.
- FHA: 3.5%
- VA: 0% down.
- USDA: You may qualify for a $0 down USDA loan. Go here to read the requirements.
Check It Out
By now you’re probably wondering if you would qualify for a home loan or not. I guess the first question you need to ask yourself is if you want to own or rent.
There are some definite benefits to owning a home. You can read about that here.
If you would like help or advice on what to do next, contact me here… Always here to help.