HousingWire staffer Sarah Wheeler and Margaret Crowley, Vice President of marketing and customer experience at go one-on-one exploring ways to educate borrowers on how they can afford their first home.
The biggest misunderstanding, Crowley notes, is the misconception that a 20% down payment is a basic non-negotiable to score on a mortgage approval, and that all first-time home buyers must navigate through Federal Housing Administration channels to get a mortgage. Crowley addresses those myths, and more. She asserts:
While FHA plays a vital role in our market, it is often misconstrued as a “loan program,” when in fact it is government-provided mortgage insurance. In fact, for many borrowers, a loan insured with private mortgage insurance (MI) can be less costly than an FHA loan and, unlike FHA, borrowers will not need to apply part of their down payment funds towards payment of an upfront premium.
Which, of course, is where MGIC comes into play.