Singles Now Recognizing the Value of FHA Home Loans
I’ve long been a fan of FHA loans. They do exactly what they were intended to do – ensure that homeownership is not out of reach for the average American, and stabilize the country’s Real Estate Market. Contrary to popular belief, an FHA home loan is not actually a loan at all. What the FHA (Federal Housing Administration) does is insure the loan, which explains why guidelines are adhered to so meticulously. FHA financing has made it possible for virtually everyone to consider homeownership as a possibility.
Home buyers employing the FHA insured mortgage have some protections prior to purchase. An FHA appraisal is required to call out drawbacks in the home that may pose a health or safety hazard. FHA appraisers are obligated to make sure the home meets certain minimum property requirements. In reality this is designed to protect FHA but you as a home buyer are the beneficiary of that protection by association.
Single millennial homebuyers are utilizing FHA financing more so than their married counterparts, with 41 percent of single millennial females and 38 percent of single millennial males obtaining an FHA loan in December 2016, according to Ellie Mae’s latest Millennial Tracker report. Thirty-five percent of married millennial females and 28 percent of married millennial men, by comparison, obtained an FHA loan. Millennial women as a whole sought out FHA loans more than millennial men.
“Last year, we saw millennials begin to enter the housing market in force,” said Joe Tyrell, executive vice president of Corporate Strategy at Ellie Mae, in a statement on the Tracker. “While life events such as marriage or starting a family often influence borrowers’ decisions to purchase a home, others see homeownership as an opportunity to build equity. As a result, we saw many single female borrowers pursue homeownership in 2016.”
The majority of home-buying activity on the part of millennial homebuyers was away from coastal cities in December, with Jasper, Ind., Fort Leonard Wood, Mo., Odessa, Texas and Owensboro, Ky. having the highest shares of millennial loans closed, upwards of 59 percent. Owensboro had the highest for all of 2016.
Source: Ellie Mae Reprinted with permission from RISMedia. ©2017. All rights reserved.
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Bill Salvatore / Arizona Elite Properties
Residential Sales, Marketing, and Property Management
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