Millennials Flock to Low Down Payment Programs
![20170412-Share-STM[1] https://goo.gl/GfTPrL](https://brookhampton.com/wp-content/uploads/blog-post-images/20170412-Share-STM1.jpg)
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.
The Role of Access in Selling Your House
As today’s housing market changes, be sure to work with your local agent to give buyers as much access as you can to your house when you sell.
An Expert Gives You Clarity in Today’s Housing Market
The right agent can help you understand what’s happening at the national and local levels.
Could a Multigenerational Home Be the Right Fit for You?
Multi-generational home buying is a way for families to often buy a home that may have been previously out of reach.
What You Should Know About Rising Mortgage Rates
If you stay the course, you’ll likely face less competition among other buyers when you’re looking for a home.
What’s Ahead for Home Prices in 2023
The decision to purchase a home is best made when you do it knowing all the facts and have an expert on your side. Call today to speak to one of our expert real estate agents.
Leverage Your Equity When You Sell Your House
Record levels of home equity provide security for millions of families, and minimize the chance of another housing market crash.
Is It Really Better to Rent Than to Own a Home Right Now?
The reason homeownership is one of the best investments you can make is the wealth it helps you build.
What Buyer Activity Tells Us About the Housing Market
January’s home showings are a positive sign that buyers are getting back out there.
4 Tips for Making Your Best Offer on a Home
When putting together an offer, your trusted real estate advisor will help you think through what levers to pull.
An Expert Makes All the Difference When You Sell Your House
It’s important to work with someone who understands how the market is changing and what it means for you.