Consumers Are Clueless About How to Qualify for a Mortgage

Consumers continue to be under a lot of wrong assumptions about what it takes to get a mortgage—and that may be holding some back from even trying.

Even though a lot of mortgage information is now available online, most consumers still overestimate the minimum credit score and down payment needed to qualify for a mortgage. They also remain unfamiliar with low-down-payment programs, according to a survey released by Fannie Mae of 3,000 respondents. More consumers also report seeing their credit scores recently, yet nearly half still cannot recall what it is.

The lack of knowledge of the requirements for a mortgage is pervasive, even among current homeowners, the study notes.