Millennials Flock Towards Low Down Payment Programs…and why you should too….
A report released by Down Payment Resource shows that 61% of first-time homebuyers purchased their homes with a down payment of 6% or less. They get it!!! Yaaaaaaaaaasssss!!! I also commented on a similar story of public servants not having 20 % down. The fact is, you don’t need 20% down: Cynthia’s Facebook Page
The trend continued among all buyers with a mortgage, as 73% made a down payment of less than 20%. Why put more down if you don’t have to? Well, there is PMI. Read more about PMI here. Yes, PMI is throwing money out the window, but so is rent.
An article by Chase points to a new wave of millennial homebuyers:
“We teamed up with Google to help us better understand what customers are searching for and how the home buying landscape is evolving. We found that millennials and first-time homebuyers are making a big splash in the market, and affordability remains top of mind.”
Among millennials who purchased homes, David Norris, Loan Depot’s Head of Retail Lending, said:
“It’s clear from the survey results that Millennials have a lot of anxiety built up about the home buying process.There is good news, however, as there’s more flexibility than most Millennials think regarding how to qualify for a loan and what’s needed for a down payment.”
Bottom Line
Millenials get it. If you are waiting to save 20% so that you can buy your first home, your ability to save may be outpaced by the rate of appreciation. 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.
