by Greg Diodati
Share
by Greg Diodati
Share
Millennials Flock to Low Down Payment Programs
A recent report released by Down Payment Resource shows that 65% of first-time home buyers 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.
STAY IN THE LOOP
Subscribe to our free newsletter.
Leave A Comment
Massive American Dream mall opens but will shoppers come EAST RUTHERFORD, N.J. (AP) — More than two decades ago when a mega entertainment and shopping complex was being conceived on a vast swath of swamp land in New Jersey, the iPhone didn’t exist, Amazon was only selling books online and malls were where […]
There are major differences between investing in residential real estate and commercial (Non-Residential) real estate beyond the price considerations. POST WRITTEN BY: Ian Formigle Vice President of Investments at CrowdStreet, overseeing the company’s online commercial real estate investment marketplace. Getty When it comes to real estate investing in single-family residences (SFRs) versus commercial real estate (CRE), there […]
Five Focal Features of a Flippable Find Buying a flip should be a numbers game. You’re not buying your own place to make memories, you don’t have to live there, so the house that you have in mind for your first flip should be one that’s not needing too much repair work, but is seriously […]
According to the Realtors Confidence Index from the National Association of Realtors, 61% of first-time homebuyers purchased their homes with down payments below 6% in 2017. Many potential homebuyers believe that a 20% down payment is necessary to buy a home and have disqualified themselves without even trying, but in March, 71% of first-time buyers and 54% of all […]
