Do 46 Million Millennials Know They Are Mortgage Ready?

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Do 46 Million Millennials Know They Are Mortgage Ready?

Do 46 Million Millennials Know They Are Mortgage Ready? | Simplifying The Market

Many have written about the millennial generation and whether or not they, as a whole, believe in homeownership as part of attaining the American Dream.

Millennials have taken longer to obtain traditional milestones than the generations before them, such as getting married, having kids, and buying a home. However, that does not mean that they do not still aspire to achieve those things.

History shows that people tend to buy their first home around age 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.

There are over 46 million millennials (33% of the generation) who are considered “Mortgage Ready”, meaning they meet the qualifications to be approved for a mortgage today!

  • a FICO Score ≥ 620
  • a Back-End Debt to Income Ratio ≤ 25%
  • no Foreclosures or Bankruptcies in the last 7 years
  • no severe delinquencies in 1 year

Rob Chrane, CEO of Down Payment Resource, commented on the findings of the report,

“We now know there are millions of buyers with the income & 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’s 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 awareness of low down payment programs to attract even more of this generation.

New data from realtor.com shows that in December, millennials accounted for 42% of all new home loans originated in the month. This is more than any other generation.

Bottom Line

If you are one of the many millennials who may be “Mortgage Ready” but are unsure what your next steps should be, let’s get together to help guide you on your path to homeownership!

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josephinetraina
josephinetraina
Josephine’s passion for the beauty and history of Charleston and her depth of knowledge of Charleston’ real estate inventory have made her the Broker of choice for incoming residents of the “Holy City”. As a MD Preferred REALTOR and DRS Agent, she is an advocate for medical professionals, assisting them and their families, guiding them to make an informed decision and excellent real estate investment. As a former Relocation Director, she has an intimate knowledge of the industry and understands what consumers need when relocating to a new city. With over 25 years in the real estate industry and a Broker in the States of South Carolina, Georgia, she handles first-time home buyers to seasoned investors, from historic homes, beach bungalows or condos or lofts. Dedication to understanding clients’ individual needs, putting each client at the center of the process and providing exceptional real estate experiences are the mainstay of her business. Josephine’s goal is to deliver superior service with insight and innovation, realizing that “Owning A Piece Of The America Dream” is the heart of everything we do. As a former managing Broker and Business Development Manager, her focus is on marketing, negotiating the sale and keeping on top of all of the little details that bring a client's transaction to a successful close. She continues to educate herself and hone her skills in order to provide the highest level of professionalism to her clients.

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