Forget all the cliché’s about Millennials living in their parents basements, or happily renting oversized closets in urban cores. We’re here to tell you that young adults are indeed becoming homeowners! We’ve it seen for a long time at StartingPoint Realty, but now national statistics are backing it up!
According to a report by RISMedia, an analysis of mortgage loans reveals that Millennials stepped up to home buying in a big way in early 2017. As of January 2017, Millennials represented 84% of all closed mortgage loans!
FHA loans were the most popular mortgage, accounting for 35% of all Millennial purchase loan activity. This suggests, but doesn’t prove, that this same demographic is mostly first-time home buyers!
The news keeps getting better. Millennials are coming to the closing table well-prepared. Ellie Mae reports that the average Millennial FICO score is 724. Here are the credit score averages, broken down by mortgage type:
- Millennial FHA borrowers average FICO score = 690.
- Millennial conventional loan borrowers average FICO score = 748.
- Millennial VA loan borrowers average FICO score = 734.
None of those scores are anything to sneeze at. What’s more, Millennials are showing restraint when it comes to maxing out their home buying budget. While Millennial home buyers had a national median annual income of $82,000, their median home sale price was only $205,000.
Millennials may not have been in a hurry to buy a home, compared to prior generations, but they seem to be approaching home ownership with a good sense of smarts. That’s something we’ve always advocated. It’s best to buy a home when YOU are financially prepared and feel ready. Whether you are a first-time home buyer at age 22 or age 72 (or better!) what matters is that it’s the right move for you.
StartingPoint Realty – specializing in first-time Chicago home buyers!
Buying your first home? You’ve come to the right place! StartingPoint Realty serves first-time home buyers throughout Chicago and the Northwest suburbs. We provide complete education and guidance during the entire home buying process!
Our free home buying seminar is like no other! No sales pitches, no pressure, just good information. Register today and bring a friend! You can also visit our Chicago Resource Center for in-person information and assistance.
Always feel welcome to contact us for help with your Chicago home buying questions!
Ryan Gable Broker/CEO Starting Point Realty
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