Most people will agree that buying a home is one of the BIGGEST investments they'll ever make. Like any investment, real estate comes with long term costs that need to be considered and budgeted
Millennials Flock To Low Down Payment Programs
Dated: April 26 2017
Millennials Flock to Low Down Payment Programs
A recent report released byDown 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 byDS 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 StrategyJoe 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.”
If you are one of the many millennials who is debating a home purchase this year, contact a local professional who can help you understand your options and set you on the path to pre-approval.
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Allison James Estates & Homes