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.

Additional Resources


  • Michelle Garofalo

    Michelle Garofalo is the guiding force behind MSC Enterprises, LLC, a prominent custom home builder and real estate developer in Monmouth County and Ocean County, New Jersey. With over 25 years in real estate development, her expertise extends from a successful career in the solar industry, where she managed over 75MW of projects. Co-founding Infiniti Energy, Michelle now oversees day-to-day operations and leads business development, ensuring a seamless journey for clients. Her meticulous approach and commitment to excellence are reflected in MSC's residential and commercial properties, known for their quality, durability, and energy efficiency.

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