Affordable New Homes! Mortgage Mythbusting in New Jersey

Think you can’t afford a new home? Think again!

Myth: Lenders require a 12% down payment

Fact: Your down payment can be as low as 3%. Can use any fixed-rate term (10, 15, 20, 30 year).

Survey said: Roughly 40% of consumers surveyed don’t know what down payment lenders require.

Myth: Lenders require a credit score of 650 or above.

Fact: You may only need a credit score of 620 for a conventional loan.

Survey said: When asked what credit score lenders require, close to 75% of consumers either don’t know, overstate, or offer scores outside the range.

Myth: Lenders are looking for your max debt-to-income ratio (DTI) to be under 40%.

Fact: Your DTI can be as high as 50%. Your DTI compares how much you owe each month to how much you earn.

Survey said: Nearly 60% of consumers surveyed do not know the maximum back-end DTI ratio that lenders use.