According to a report from Down Payment Resource just released, it turns out that 65% of first-time homebuyers bought their homes with a down payment of 6% or less in January. And of all buyers who had a mortgage, 62% made a down payment of less than 20%.
What does this all mean for millenials? An article by DS News points to these 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.”
For millennials who purchased homes in January, 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.”
If you’re a millennial who’s wondering if you should buy a home this year, please feel free to contact us. We can help you understand your options and get you on the path to preapproval.