Millennials Flock to Low Down Payment Programs

Do you find saving for a down payment very hard but can afford the monthly payments?  Don’t worry you are like most of the homebuyers this year.  That is why Fannie Mae offers FHA financing with 3.5% downpayment and the USDA offers 100% financing in Collier County.  Most people can save to make their monthly payments but saving that large amount in the bank is difficult.  Don’t worry, call me today and let’s work with a mortgage broker to get you qualified for a low or no downpayment mortgage!

Courtesy of Keeping Current Matters 2017

Millennials Flock to Low Down Payment Programs | MyKCM

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..

The trend continued through all buyers with a mortgage, as 62% made a down payment of less than 20%.

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 purchase homes, 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.

Remember it is always toasty in Naples and you CAN own a home of your own.  I know some very good mortgage brokers waiting to help us get you qualified and into a new home!

Comments are closed.