In a recent article, First American shared how millennials are not really any different from previous generations when it comes to the goal of homeownership; it is still a huge part of their American Dream. The piece, however, also reveals,

 “Saving for a down payment is one of the biggest obstacles faced by first-time home buyers. Dispelling the 20 percent down payment myth could open the path to homeownership for many more.”

 Myth #1: “I Need a 20% Down Payment”

Buyers often overestimate how much they need to qualify for a home loan. According to the same article:

“Americans still overestimate the qualifications needed to get a mortgage, resulting in qualified potential buyers not even considering homeownership. Indeed, the Urban Institute report revealed that 16 percent of consumers believed that the minimum down payment required by lenders is 20 percent or more, and another 40 percent didn’t know at all.”

While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a little research, many renters may actually be able to enter the housing market sooner than they ever imagined.

In Tooele County, you could really be in luck. You might be able to buy a new house (or one previously owned) for no money down. That's zero down. ZERO, ZIP, NADA.

A government sponsored mortgage program, (Farmers Home Loans) was initiated a few years ago to encourage growth in more rural areas of the country. This program was managed by the USDA and extended 100% housing loans to qualified buyers in certain rural locations. Tooele County was one of those.

While these USDA backed loans have helped Tooele grow over the last few years, the USDA has not withdrawn their approved qualification. 

The result is, you might qualify for a 100% mortgage in Tooele City, Stansbury Park, Grantsville UT, Erda Utah, or Lake Point. Actually, any place in Tooele County.

You can find out more about the USDA loan program here. or give Berna a call to see if you and the property you like qualifies.

Myth #2: “I Need a 780 FICO® Score or Higher”

In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing a ‘good’ credit score is 780 or higher.

To debunk this myth, let’s take a look at Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans.As indicated in the chart above, 50.23% of approved mortgages had a credit score of 500-749.

Bottom Line

Whether buying your first home or moving up to your dream home, knowing your options will make the mortgage process easier. Believe it or not – your dream home may already be within your reach.

Read this for more helpful Real Estate info: Or give Berna a call @ 435-840-5029. Ask about myths holding back home buyers in Tooele County Utah
https://www.realtor.com/advice/buy/home-buying-myths/