Here's what to know about the millennial generation's position in the housing market.
The millennial generation is the largest in the United States, and they are starting to enter the housing market in large numbers. The majority of Millennials in fact are now homeowners, with 52% of the generation owning a home.
In today’s very challenging purchase market environment, millennials are facing several challenges when it comes to homeownership, including high home prices, student loan debt, and a competitive housing market. Understanding the needs of this borrower segment is critical in meeting their demand.
Millennials in the Housing Market
Homeownership can be a great way to build wealth and security. By taking steps to improve their financial situation and take advantage of government programs, millennials are primed to be the future of homeownership.
There are several things that millennials can do to make homeownership more attainable. One is to save for a down payment. Another is to improve their credit score. A good credit score can help to qualify for a loan and get a lower interest rate.
Mortgages for Millennials
Millennials can take advantage of government sponsored programs that can help them buy a home. For example, the Federal Housing Administration (FHA) offers loans with down payments as low as 3.5%. The Government Sponsored Entities (GSEs), offer affordable mortgage programs with down payment as low as 3%, The Department of Veterans Affairs (VA) also offers loans to veterans with no down payment required.
Here are some tips for millennials who are interested in homeownership:
- Get pre-approved* for a mortgage. This will give you an idea of how much you can afford to spend on a home.
- Work with one of our many expert loan advisors across the county who specialize in working with millennials. They are an excellent resource for any questions you may have about the homebuying process.
- Don't be afraid to negotiate. The seller may be willing to lower the price or offer concessions, such as paying closing costs.
- Be prepared to make a move quickly. The housing market is competitive, so you may need to act fast when you find a home that you love.
Homeownership can be a great investment, but it's important to do your research and make sure that you are ready to take on the responsibility. By following these tips, you can increase your chances of success.
Overall, millennials are poised to become the future of homeownership. By taking steps to improve their financial situation and take advantage of government programs, millennials can make homeownership a reality.
Our Affordable Lending Team
Our affordable Lending Team will host a webinar for our salesforce and their referral partners to provide a glimpse into the millennial homebuying market and some actionable insights, opportunities, and solutions to engage with the borrower of the future.
*Pre-approval: Offer is contingent upon a full credit review. A pre-qualification does not signify that all underwriting requirements have been met. Actual terms, including interest rate, are subject to change without prior notice and may vary based on eligibility criteria. All products are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations apply.