A recent study by Fannie Mae revealed a surprising lack of confidence among consumers about the mortgage.
There’s good reason to feel a little cautious. Here in Ohio home prices have risen 28% and in Kentucky 30% since 2020. In addition mortgage rates have also climbed. However, homeownership remains a top priority for most, with many considering it a sound long term investment.
All of this can lead to feeling overwhelmed and unsure of your ability to qualify for a home loan. The good news is there are options available—options you may not even be aware of.
So today, we’ll discuss some different mortgage resources available in your area.
Challenges When Navigating the Mortgage Process
Fannie Mae’s study found that many consumers are unaware of important aspects of the mortgage process, which creates additional hurdles.
Here are the top three challenges consumers face due to knowledge gaps:
Lack of confidence: Less than half (45%) of consumers would feel confident going through the mortgage process. That number drops to 38% for those who are actively home shopping.
Overestimating minimum down payment: 90% of consumers either don’t know or overestimate the minimum down payment required for a typical mortgage.
Misestimating minimum credit score: Only 32% of consumers know the approximate minimum credit score required by mortgage lenders (the FICO minimum score required is 620). The remaining either overestimate or underestimate this number.
The study also found that just 32% are “somewhat” or “very” familiar with low down-payment programs, and 40% are aware of mortgage counseling services available.
To make sure that you have all the information you need, keep reading for mortgage resources available here your market.
Mortgage Resources in Ohio:
Low Down Payment Assistance Programs
You may know that a 20% down payment isn’t required, but how low can you go? In some cases, as low as 0-3% down. Here are some programs available in the midwest.
- Your Choice! Down Payment Assistance, Ohio Heroes, Grants for Grads, Mortgage Tax Credit, Communities First Down Payment Assistance, First-Time Home Buyer Loans
- Reach out to a lender you work with and get a list if you don’t already have one.
Mortgage Counseling Services
Housing counseling or mortgage counseling services are also available to help you prepare your finances and get ready for the costs of home ownership.
Various loan programs with low down payment options, such as FHA loans (3.5% down), VA loans (0% down), USDA loans (0% down), and Conventional 97 loans (3% down).
Freddie Mac Borrower Help Centers (select your region for a list): https://myhome.freddiemac.com/resources/working-with-freddie-mac-borrower-help-centers
Search for HUD’s participating housing counseling agencies in your area here: https://answers.hud.gov/housingcounseling/s/?language=en_US
Professional Lenders
Reading about these programs and services online is one thing, but we always recommend speaking with a knowledgeable, trusted professional to gain a deeper understanding of all the resources available to you. Remember, the key to a successful homebuying experience is knowledge and preparation. By getting the right support system in place, you can turn your dream of homeownership into a reality.
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