Digital Risk recently polled Millennials about the housing market. Among their findings was the fact that nearly two-thirds of the generation who have recently purchased a home, have done so with less than 20% down; with 36% putting down less than 5%!
This means that more and more Americans between the ages of 18 and 34 stopped paying their landlord’s mortgages and started building their own family’s wealth.
Millennials are not the only ones taking advantage of lower down payments.
The Federal Reserve Bank of New York found that if the required down payment went from 20% to 5%, renters are 40% more likely to purchase their own home.
Let’s look at a real life example. One of my current listings sells for $249,000. It’s a completely renovated wonderful home. It is located in Gulfport, Florida, which is a highly desirable community in Pinellas County. One of the mortgage companies I’m working with estimates the total monthly payment to be $1,559.59. That is for a conventional mortgage with 5% down payment.
Should the buyers qualify for an FHA mortgage, they only pay 3.5% down and $1,538 per month. It gets even better for a VA mortgage with 0% down. The total monthly payment is $1,414 in that case.
So, for approximately $1,500 per month, you could get a lovely 3 bedroom home with a pool. What a deal!
Take a look at this information sheet for more details.
Millennials and renters, stop paying your landlord’s mortgage, start building your own real estate wealth!
It is part of my Next Level Service to refer my buyer clients to some hand-picked mortgage experts. They work hard to make sure that my clients – not only millennials – get a financing solution that is tailored to their needs. Call me at 727.667.6877 and start building your real estate wealth.