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.

Keeping Current Matters

What’s Ahead for Home Prices in 2023

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.

Pin It on Pinterest

BrookHampton Realty
https://goo.gl/GfTPrL
The Role of Access in Selling Your House
An Expert Gives You Clarity in Today’s Housing Market
Could a Multigenerational Home Be the Right Fit for You?
What You Should Know About Rising Mortgage Rates
What’s Ahead for Home Prices in 2023
Leverage Your Equity When You Sell Your House
Is It Really Better to Rent Than to Own a Home Right Now?
What Buyer Activity Tells Us About the Housing Market
4 Tips for Making Your Best Offer on a Home
An Expert Makes All the Difference When You Sell Your House
Share This