A joint mortgage readiness study conducted by Freddie Mac and Experian suggests that many of the 75 million U.S. Millennials (born between 1982 – 2000, according to the U.S. Census) are ready or near-ready to qualify for a mortgage.
According to the study: 33 percent of Millennials have strong or moderate credit with an average income of $53,000. Also, for those with student loans, loan payments average just 4-7% of their monthly gross income, making student loan debt less of a factor when making a decision to buy a home.
Many potential first-time homebuyers qualify for an FHA loan. So, what exactly is an FHA loan? An FHA loan is a mortgage that is insured by the Federal Housing Administration (FHA), an agency of the U.S. government. FHA loans feature:
- Down payments as low as 3.5%;
- Lower closing costs;
- More flexible underwriting standards as compared to a conventional mortgage
Having the right loan program to serve this important demographic is very important as the National Association of REALTORS®, Homebuyers and Sellers Generational Report – 2018 states. 88 percent of recent buyers financed their home purchase and 98 percent of buyers 37 years and younger financed.
To better understand the possibilities of homeownership and find out more about the right loan program for you, check out The Home Buying Process or contact one of our loan advisors today at 877-684-4210.