Do 46 Million Millennials Know They Are Mortgage Ready?

Many have written about the millennial generation and whether ornot they, as a whole, believe in homeownership as part of attainingthe American Dream.

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

History shows that people tend to buy their first home aroundage 30. Nearly 5 million millennialswill turn 30 in the nexttwo years. This will continue to fuel demand for housing.

This is also one of the many reasons why the millennialhomeownership 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 “MortgageReady”,meaning they meet the qualificationsto 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 theincome & credit necessary to qualify to buy a home. The biggestquestion is:

Do they knowit? …Unfortunately, many rentersdon’t investigate homeownership simply because theydon’t believe it’s an option.”

The good news is that more and more millennials are realizingthat they can afford a home now. Even so, more can be done toincrease awareness of low down payment programs to attract evenmore of this generation.

New data from realtor.com shows that inDecember, millennials accounted for 42% of all new home loansoriginated in the month. This is more than any othergeneration.

Bottom Line

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