The Greatest Generation. Baby Boomers. Gen X. Millennials. Gen Z. Different names for different groups of people, but the one thing we all have in common? We need a place to live.
To be sure, the standard GSE 30-year fixed rate has proven to be a sound product over the years (Option ARM’s, anyone?), but today’s homebuyer is very different from even ten or twenty years ago.
One thing we know, this isn’t your father’s mortgage anymore…
According to the National Association of Realtors, the average age of a first-time homebuyer is now 32 years old and as a percentage of income, FTHB’s now are purchasing a home valued at roughly 2.6 times their income, vs 1.7 back in the 70’s.
41% of those 32-year-old’s now carries an average student debt load of $29,000. They also rent for nearly 3 times as long before they buy a house, likely a factor of necessity to save for a bigger home while carrying a higher debt load.
According to a recent Genworth market report, in the past 3 years, 79% of first-time homebuyers have relied on low down payment mortgage products. FHA, VA, and USDA collectively made up nearly a third of that volume.
As a lender, higher average home values, lower down payments, and historically tight inventory means you have to have all the necessary tools at your disposal. Inlanta Mortgage’s Third Party Origination program can expand your reach to those first-time homebuyers.