Low Down Payment Options

Millennial Buyers Flock to Low Down Payment Programs

A recent report by Down Payment Resource shows 65% of first-time home buyers purchased their home with a down payment of 6% or less in January 2017.  In fact, this trend is consistent with all buyers using a loan to purchase, as 62% made a down payment of less than 20% in December 2016.

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.”

FHA loans remained popular with millennial home buyers, making up 35% of all loans closed in January. Ellie Mae’s Executive Vice President of Corporate Strategy Joe Tyrrell explains 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.”

Real Estate Bottom Line

If you are a millennial buyer thinking about buying a home in 2017, let’s get together to help you understand your options and set you on the path to home ownership.