Incentives are high and the market is encouraging for new homebuyers, especially Millennials, to begin investing in real estate. With changes in federal policy, as well as changes in Fannie Mae and Freddie Mac application – it’s become easier for Americans to purchase a house due to lower down payments!
A millennial that works here in our Lexington office recently purchased a gorgeous home through Fannie Mae and a Rector Hayden REALTOR – and was able to buy such a dream home due to the lower down payment requirements.
Many millennials aren’t aware of the change in policy though! Becoming an expert resource in this information could be the key to attract millennial business and growing your sphere to include this new generation of home-buyers!
Below are some snippets from a recent USA Today article discussing the lower down payments, or you can read the whole article on USAToday.com here: http://www.usatoday.com/story/money/personalfinance/2015/02/15/3-down-payments-lure-first-time-homebuyers/23424759/
– In December, mortgage giants Fannie Mae and Freddie Mac announced they would reduce the minimum down payment on certain mortgages from 5% to 3%. For someone buying a $150,000 home, the change means the difference between a down payment of $7,500 and $4,500.
– In January, the Federal Housing Administration announced it was reducing mortgage insurance premiums by 50 basis points. The White House said the reduction would save the average homebuyer about $900 a year and would enable about 250,000 people to buy a home.
– Typically, to qualify for a 3%-down mortgage, borrowers need a credit score of at least 620. But without a good job and a solid explanation for credit blemishes, buyers will probably need a score of 660 to 680 – The minimum score for FHA mortgages is 600.
– This year, Millennials are poised to overtake Baby Boomers as the nation’s largest generation, so getting them to trade rent checks for mortgages is seen as critical to strengthening the housing market.
Thanks for tuning in to #RHRTipTuesday – for more information about reaching the millennial market or strengthening your marketing strategies – don’t forget about Rector Hayden’s Social Media Marketing Class every month! This month’s class will be held on June 30th.