Believe it or not….The Millennials (born between 1980 and 1995) are the largest group of home buyers in the current real estate market. This group currently makes up 32 percent of all home buyers.
Until recently, Millennials (or Gen Y’ers) have been the least interested in purchasing a new home. However, this has recently changed according to a report released in March by the National Association of Realtors.
Benefiting from Government Home Buying Programs Home buying Millennials are taking advantage of the governments push for home ownership. New programs being offered by Fannie Mae and Freddie Mac allow for as little as three percent down for a first-time home buyer.
In addition, the three percent down payment can come from a gift and does not have to come from their savings, making it even easier to purchase a home.
This three percent program was introduced to compete with FHA loans. FHA loans currently allow as little as 3.5 percent down for first time home buyers.
A rate reduction in mortgage insurance premiums this year has also increased the affordability of purchasing a home through the FHA program. As an additional bonus, FHA loans are available for people with credit scores as low as 550, and possibly lower if a larger down payment is used.
These programs are making buying a home irresistible for the millennial generation.