Realtor Christina Lazrak Evaluate FICO scores before buying

According to the February Realtor Confidence survey conducted by the National Association of Realtors (NAR), the percentage of home buyers putting less than the standard 20 percent down payment amount is at the lowest level in nearly a year. The same survey found that prospective Boston home buyers had difficulty qualifying for a mortgage.

Boston Home Buyers With Good Credit

A comparison of FICO scores for transactions as reported by Realtors responding to the survey were compared with FICO scores reported by Fannie Mae’s “Acquisition Profile.  By Key Product Features”, credit availability to lower scoring applicants seems to have declined since the Fannie Mae data in 2001-2004.

For those Boston home buyers with good credit and access to programs like FHA, down payment requirements are lessening. Approximately 64 percent of buyers with a mortgage are putting down less than 11 percent, according to the survey.

Very few Realtors responding to the survey said prospective home buyers with FICO scores below 620 were able to obtain a mortgage. The same group said approximately 15 percent of those with FICO scores between 660 and 700 were able to get a mortgage. These figures were compared to 18 percent in the Fannie Mae data.