Millennials Flock to Low Down Payment Programs
A recent report released by Down Payment Resource shows that 65% of first-time homebuyers purchased their homes with a down payment of 6% or less in the month of January.
The trend continued through all buyers with a mortgage, as 62% made a down payment of less than 20%, which is consistent with findings from December.
An article by DS News points to the new wave of millennial homebuyers:
“It seems that the long-awaited influx of millennial home buyers is beginning. Ellie Mae reported that mortgages to millennial borrowers for new home purchases continued their ascent in January, accounting for 84 percent of closed loans.”
Among millennials who purchased homes in January, FHA loans remained popular, making up 35% of all loans closed. Ellie Mae’s Executive Vice President of Corporate Strategy Joe Tyrrell gave some insight into why:
“It is not surprising to see Millennial borrowers leverage FHA loans because they typically offer lower down payments and lower average FICO score requirements than conventional loans. Across the board, we’re continuing to see strong interest in homeownership from this younger generation.”
Bottom Line
If you are one of the many millennials who is debating a home purchase this year, let’s get together to help you understand your options and set you on the path to preapproval.
What Are the Experts Saying About the Spring Housing Market?
Buyers are going to see more competition than they might expect because there are not many homes on the market.
The Power of Pre-Approval
Pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow.
What’s the Difference Between a Home Inspection and an Appraisal?
Your trusted real estate professional will help you navigate both the inspection as well as any issues that arise during the buying process.
5 Reasons Millennials Are Buying Homes
The top reasons include building equity, a change in life stage, wanting stability, rising home values, and wanting to make somewhere truly their own.
Think Twice Before Waiting for Lower Home Prices
The best way to understand what home values are doing is to work with a local real estate agent who can give you the latest insights.
The Big Advantage If You Sell This Spring
Thinking about selling your house? If you’ve been waiting for the right time, it could be now while the supply of homes for sale is so low.
Homebuyer Activity Shows Signs of Warming Up for Spring
The recent uptick in mortgage applications, and the decline in mortgage rates, is good news for sellers!
Trying To Buy a Home? Hang in There.
As we move into the spring buying season, even though we are still in a sellers’ market, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.
Two Reasons You Should Sell Your House
Wondering if you should sell your house this year? As you make your decision, think about what’s motivating you to consider moving and let’s connect today!
How Changing Mortgage Rates Can Affect You
It’s critical to lean on your expert real estate advisors to explore your mortgage options and understand what impacts mortgage rates.