Most millennials would like to buy a home but don't think they can - yet.
A recent survey of millennials by loan software company, Ellie Mae, found that while 91% of millennials aspire to home ownership, nearly half said the biggest barrier is inability to raise the funds for the down payment. About one third said the inability to qualify for a mortgage is also a hurdle.
Here's some good news!
1) The Federal Housing Administration (FHA) just announced a cut in their annual mortgage premium from .85% to .60%. FHA mortgages have a low down payment option but traditionally the premiums for mortgage insurance (which is required for an FHA loan) have priced people out of the market. This premium reduction means more buyers can meet the debt-to-income ratio required to qualify for a mortgage loan.
2) A big misconception is that a down payment of 20% is required to purchase a home. The truth is there is no universal guideline that all mortgage lenders must adhere to. In fact, there are mortgage programs that have lower down payments for first time buyers and veterans. The down payments for FHA loans can be as low as 3.5% and some VA loans for veterans don't require any down payment. Besides these, there are a variety of mortgages with a range of terms that appeal to all types of homebuyers. From low down payment requirements to credit score leniency, amortgage program is out there that meets almost everyone's particular needs.
3) There are over 2,300 homebuyer assistance programsavailable and nearly 80% of people can qualify for some form of assistance. In fact, Texas has 168 programs available - the third highest number of programs in the entire country! Programs exist for first time homebuyers, veterans and military service members, community service workers such as educators, police officers, firefighters and health care workers, and many others. Homebuyer program assistance comes in many forms including down payment loans, tax credits, and grants. To qualify for most programs, the prospective homebuyer and the property must meet specific criteria that vary by program.
Because of the number and complexity of programs available, the first step to take is to have a discussion with a mortgage lender. A lender can advise on your specific situation and help you choose the mortgage and homebuyer assistance program that is best for you.
Curious about your specific situation but you don't have a preferred lender? #LetMelodyHelp introduce you to some reputable lenders that we work with.
Author:Melody Orrantia Phone: 214-697-7760 Dated: January 21st 2017 Views: 314 About Melody: Melody loves being of service and she hopes you Let Melody Help.
Born and raised in Mississippi, ...
View our latest blog posts in your RSS reader. Click here to access.
Rogers Healy and Associates Real Estate is a DFW based residential and commercial real estate company that was founded in 2007 by Rogers Healy. RHAdfw is passionate about developing long lasting relationships with clients while representing them to buy, sell or lease any home in DFW.