If you follow UF/IFAS Extension St. Lucie County on social media, you had the opportunity to participate in our “Think Fast Fridays” series showcasing homeownership. June is National Homeownership Month, and we focused on various facts. Check out the recap of each week below!  

Week 1 of National Homeownership Month

Without 20% down, I cannot but a house” 

• True  

• False 

False – While 20% is best practice, you can purchase a home without 20%!

To get a conventional mortgage without 20% down, PMI will be required. PMI is Private Mortgage Insurance. PMI is an added monthly cost to your mortgage and protects the lender. FHA Mortgages also have their own type of insurance for those who have a down payment lower than 20%. To learn more about PMI please visit https://yourhome.fanniemae.com/buy/private-mortgage-insurance 

 

Week 2 of National Homeownership Month

What is the minimum credit score you need for a mortgage?  

• 300 

• 450 

• 620 

• 720 

620 – To have a Freddie Mac or Fannie Mae backed loan, the minimum credit score is 620. 

The minimum credit score for Freddie Mac and Fannie Mae is 620. Freddie Mac and Fannie Mae play a vital role in the mortgage industry. To learn more please visit https://www.fhfa.gov/about/fannie-mae-freddie-mac 

 

Week 3 of National Homeownership Month

How long does it take to build history if you have never had credit?  

• 2 years 

• 1 Year 

• 6 Months 

• 1 Month 

6 months – At least 6 months are needed to build a credit report.  

Credit reports and scores take time to build. 6 months is a good time frame to build history on your credit report. More time may be needed to build a good credit score. It also depends on the scoring model! For more information specific to FICO please visit https://www.experian.com/blogs/ask-experian/how-long-does-it-take-to-build-credit/ 

  

Week 4 of National Homeownership Month

What does a mortgage escrow account pay for? 

• Remodel 

• Downpayment 

• Insurance 

• Furniture 

Insurance – Escrow is a separate account within your mortgage that pays for Property Taxes and Homeowners insurance.  

Sometimes escrow is mandatory in mortgages; it is important to recognize what it is and how it works. Escrow is part of the monthly mortgage payment. That amount is set aside each month to pay property taxes and insurance when they are due. This helps the lender ensure that they are paid for. To learn more about escrow please visit https://www.consumerfinance.gov/rules-policy/regulations/1024/17/#6a2895924f8161f37a7214ca3ead9d8b8d8bd173a5a656a44dcf7e29 

 

Bonus Round: 

What is the definition of a First-Time Homebuyer? (select all that apply) 

• Never owned a home or residential property 

• Has not owned a home in at least 3 years 

• Are applying for a home loan for the first time  

All of the above! There are multiple definitions of a First-Time Homebuyer. 

HUD (US Department of Housing and Urban Development) recognizes that there are many circumstances that can lead a person to need assistance when buying a home. Therefore, First-Time Homebuyer programs are available to assist in a wide variety of situations. For example, divorced single parents could qualify as a First-Time Homebuyer. To read more about HUDs definitions please visit https://archives.hud.gov/offices/hsg/sfh/ref/sfhp3-02.cfm 

 

If you participated in the Think Fast Fridays series, thank you! If not, join us on our social media at https://www.instagram.com/ufifas_slc/ or https://www.facebook.com/StLucieExtension/! You never know what trivia we will post! If you have any questions, please contact Josey Pearce Keener at Josey.Keener@ufl.edu 

 

Social Media Graphics Created by Katherine Westenhaver 

Featured Image by UF/IFAS Photo by Tyler Jones