Much has been written about the millennial generation and whether or not they, as a whole, believe in homeownership as part of attaining the American Dream.
Unlike generations before them, millennials have taken longer to obtain traditional milestones, such as getting married, starting a family and buying a home. However, that does not mean that they do not still aspire to achieve these things.
History shows that people tend to buy their first home around the age of 30. Nearly 5 million millennials will turn 30 in the next two years. This will continue to fuel demand for housing.
This is also one of the many reasons why the millennial homeownership rate has continued to grow over the past few years. 48.4% of Americans between the ages of 30-34 now own a home.
A recent study found that there are over 46 millennials, 33% of the generation, who are considered “Mortgage Ready”, meaning they met the qualifications to be approved for a mortgage today:
• A FICO score > 620
• A Back-End Debt to Income Ration < 25%
• No Foreclosures or Bankruptcies in the last 7 years
• No Severe Delinquencies in 1 year.
Bob Crane, CEO of Down Payment Resource, commented on the findings of this report, “We now know there are millions of buyers with the income and credit necessary to qualify to buy a home. The biggest question is: Do they know it? Unfortunately, many renters don’t investigate homeownership simply because they don’t believe it is an option.”
The good news is that more and more millennials are realizing that they can afford a home now. Even so, more can be done to increase the awareness of low down payment programs to attract even more of this generation.
If you are wondering if you are “Mortgage Ready” but are unsure what your next steps should be, feel free to reach out to me so I can to help guide you on your path to homeownership.