Young Home Buyers Are Renting

Young home buyers are holding off on purchasing their first homes causing the rental market to explode.  According to a 2014 study, 39% of renters enjoy renting and continue to do so, and 42% do not wish to own their own home.  In 2015, there is expected to be 41 million single-family rentals nationwide.

High student debt, bad credit scores, and trouble paying bills on time are providing obstacles for young home buyers.  According to the U.S. Census Bureau, during the second quarter of 2014, homeownership fell to 64.7%, which was the lowest reported in 19 years.  Property owners and managers reported a 41% increase in millennial renters over the past year.  According to a report by The National Association of Realtors, first-time home buyers fell 5% to 33% in the last year, which was the lowest reported level since 1987.

An estimated 50% of first-time home buyers have to go to their parents for down payment assistance.  Most young home buyers are stating that they would ask their parents for the down payment before giving up their cars.  When getting the down payment from parents is not an option, these first-time home buyers are turning to other options: 37% plan to work a second job while 22% plan to use state or federal programs.  According to Mortgage Professional America, a number of first-time home buyers would never give up their car, smartphone, cable, vacations, eating out, shopping, gym membership, and other leisure items for a down payment.

FHA loans are available for first-time home buyers.  FHA loans offer down payments as low as 3.5% and allow for gift money to be used towards down payments.  Our own Graham Montigny and Michael Wolf are able to help you with an FHA loan for those who live in Ohio, Pennsylvania or Indiana.

If you are interested in learning more about FHA loans, contact Graham Montigny at 614-309-0427 or gmontigny@recasafinancial.com, or Michael Wolf at 614-221-6770 or mwolf@recasafinancial.com.

 

ReCasa Financial Group   614-221-6770
NMLS #9722 OH: MB.803923.000 IN: 08-0038 LB  PA: Licensed by the PA Department of Banking
130 E. Chestnut Street, Suite 200 Columbus, OH 43215    

Graham Montigny   NMLS # 195412   OH LO 002049.000     IN LO 195412     PA LO 35011
Michael Wolf  NMLS # 85452  OH LO 001440.001