FICO Score: Don't Disqualify Yourself... Half of Scores are Under 750

Real Estate Agent with Luxury Valley Homes For Buyers & Sellers Phoenix AZ Area SA524104000

FICO Score - The results of countless studies have shown that potential home buyers, and even current homeowners, have an inflated view of what is really required to qualify for a mortgage in today’s market.

One such study by the Wharton School of Business at the University of Pennsylvania, revealed that many Millennials have not yet considered purchasing a home, simply because they don’t believe they can qualify for a mortgage.

The article quoted Jessica Lautz, the National Association of Realtors’ Managing Director of Survey Research, as saying that there is a significant population that does not think they will be approved for a mortgage and doesn’t even try.

The article also quoted Fannie Mae CEO Tim Mayopoulos:  

“I do think that there’s a sense out there in the marketplace among borrowers that credit may not be available, especially for people with lower credit scores.”

Ellie Mae’s Vice President, Jonas Moe recently encouraged buyers to know their options before assuming that they do not qualify for a mortgage:

“Many potential home buyers are 'disqualifying' themselves. You don't need a 750 FICO Score and a 20% down payment to buy.”

So what credit score is necessary? Below is a breakdown of the FICO Score Distribution of all closed (approved) loans in August from Ellie Mae’s latest Origination Report.

FICO Score Distribution

Over 50% of all approved loans had a FICO Score under 750. Many potential home buyers believe that they need a score over 780 to qualify.

Bottom Line

If owning a home of your own has always been a dream of yours and you are ready and willing to buy, find out if you are able to! Let’s get together to determine if your dreams can become a reality sooner than you thought! 




Jeff Daley

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Rhonda Howlett
Clocktower Realty Group - Richmond, VA
Your History... In the Making...

Great article! Many people still have this perception and we need to break this!

Dec 21, 2016 09:02 AM #1
Amy Kramer
Reilly Realtors - Austin, TX
Realtor serving Austin and surrounding communities

Important information especially regarding millenials.  This type of eduction is what is needed to help them begin to see themselves as homeowners.  Thanks Jane & Jeff Daley, PhD .

Dec 21, 2016 10:20 AM #2
Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Good advice for potential home buyers Jeff & Jane. Talking to your lender & finding how much you qualify BEFORE looking for a home is so important. Great article, thanks for sharing guys!

Dec 21, 2016 01:19 PM #3
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Scottsdale Real Estate Arizona
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