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- Most consumers overestimate the minimum credit score or required down payment necessary to qualify for a mortgage.
- Potential homebuyers will find strategies for saving money for a down payment; ways to improve low credit scores; an affordability calculator to estimate a maximum home purchase price based on current expenses and income and more.
Fannie Mae is seeking to help demystify the homebuying process for future homeowners with Your Own Story, a campaign designed to increase consumer knowledge with facts and figures that dispel myths about what it takes to achieve sustainable homeownership, according to a press release.
The company launched this educational section in honor of National Homeownership Month. These resources provide consumers with tools to take the first steps in the homebuying process.
“Homebuyer education is at the heart of Fannie Mae's mission and that's why we created Your Own Story, an interactive resource for future homebuyers to help them achieve sustainable homeownership,” said Katrina Jones, vice president of Racial Equity Strategy & Impact, Fannie Mae. “We know that misinformation can negatively impact potential homebuyers – especially those with moderate or low income – as many set the bar higher than needed for credit scores and down payments.”
According to a June 2019 report, most consumers overestimate the minimum credit score or required down payment necessary to qualify for a mortgage, which creates a perceived barrier to entry for homeownership. Your Own Story addresses those misperceptions with facts, educating future homebuyers that when certain eligibility requirements are met, 3% down payment loans are available, and, even with a credit score of 620, consumers may be able to qualify for a mortgage.
The new tool breaks down the path to homeownership in seven interactive steps, including the basic requirements necessary to qualify for a mortgage, factors to consider when choosing a home, and the responsibilities of homeownership.
Additionally, potential homebuyers will also find strategies for saving money for a down payment; ways to improve low credit scores; an affordability calculator to estimate a maximum home purchase price based on current expenses and income; the different types of loans; and more.
"Fannie Mae is continually focused on sustainable homeownership," Jones added. "National Homeownership Month is an excellent opportunity to give people the facts and show them how they can get on the pathway to owning a home."