Survey says homebuyers overestimate credit scores, down payments

"More than half of respondents (57%) believe a credit score of at least 660 is needed to qualify for a mortgage, and 34% think the bar is even higher at 700 or above. In practice, many buyers can secure financing with scores around 620, and some loan programs permit even lower scores."

"Nearly half of would-be buyers (46%) think a conventional loan requires more than 5% down, and 15% believe a 20% down payment is required. In reality, conventional loans often start at 5% down, with some first-time buyers eligible for 3% down."

"The truth is there are flexible loan options designed to help people buy sooner, often with less upfront cash and more forgiving credit requirements than they expect."

"About 66% of respondents said you need near-perfect credit to secure the best interest rates. At the same time, 61% believe the government directly dictates the rates lenders can offer."

Survey data reveals that many prospective homebuyers mistakenly believe they need high credit scores and large down payments to qualify for mortgages. Over half of respondents think a score of at least 660 is necessary, while many are unaware that loans can be secured with scores around 620. Misconceptions also extend to down payments, with many believing they need more than 5% or even 20%. Flexible loan options exist that require less upfront cash and have more forgiving credit requirements than expected.

Read at www.housingwire.com