You Do Not Need 20% Down to Buy a House gone are the days of 20% down or no loan, but recent surveys reveal that many Americans are not aware that programs exist to put down less.
Fannie Mae’s article, “What Consumers (Don’t) Know About Mortgage Qualification Criteria,” revealed that “only 5 to 16 percent of respondents know the correct ranges for key mortgage qualification criteria.”
The survey results revealed that consumers often overestimate the down payment funds needed to qualify for a home loan; 76% of respondents either don’t know (40%) or are misinformed (36%) about the minimum down payment required.
Many believe that they need at least 20% down to buy their dream home, but many programs actually let buyers put down as little as 3.5%. so again You Do Not Need 20% Down to Buy a House
Many Americans believe a ‘good’ credit score is 780 or higher. 54% of approved mortgages had a credit score of 600-749. The image below is right off of the FHA website. FHA loans provide great assistance to many first-time home buyers by offering mortgage loans with lower down payments.
FHA Loan Limits
There’s a maximum limit to what you can borrow for an FHA loan, and how much you can borrow depends on the county in which your potential home is located.
According to the Department of Housing and Urban Development, the maximum FHA lending amount for high-cost areas (such as large metropolitan areas) is up to $1,089,300 for 2023. This is also the limit for Alaska and Hawaii at Rocket Mortgage. The policies of lenders regarding Alaska and Hawaii do differ in terms of loan limits. In lower-cost areas, the FHA limit is $472,030. Loan limits are set based on county property values. These are the limits for one-unit properties. If you have multiple units, limits may be higher.
You can look up the FHA mortgage limits for one or more areas on the FHA mortgage limits page. The page also includes a median sale price value for each area. Those are the median price estimates used for loan limit determination, according to HUD.
more on fha loans can be found here https://www.rocketmortgage.com/learn/fha-loans