1st-Time Buyers are Looking in Walkable Communities
In a recent National Association of Realtors survey of 2,000 respondents, 78% said that they would pay more for a home in a walkable community. In this article, we are zeroing in on the overwhelming generational response from Millennials. This group, composed of many first-time buyers, may be reaching for an FHA Loan for their first home, but let’s talk about how Conventional and 97% LTV Mortgages can help them cross items off the walkable community wishlist.
What Millennials Want
A total of 85% of Millennials responded with a willingness to pay more to live in a walkable community, with 52% saying they’d pay a little more and 33% saying they’d pay a lot more. And about half of all surveyed were willing to trade in a single-family home for a condo or townhome. This easily coincides with the list of items considered by many as “very important”, such as being within an easy walk of community amenities and having public transit nearby.
How They Can Get It
First, let’s take a look at the willingness to pay more. Depending on a buyer’s price range and the area in which they are buying, they may find themselves up against the FHA Loan limit. In this instance, a conventional mortgage will help them accomplish their goal, while still benefiting from a minimum down payment of 5%.
Secondly, condos & townhomes and FHA Loans do not always mix well. FHA buyers are limited to a list of approved condo projects and many townhome associations do not accept FHA purchases. Instead, we suggest that these buyers use a HomeReady or HomePossible loan. They can put just 3% down and benefit from a loan that acts just like a conventional mortgage.
Location, Location, Location
Whether you’re a first-time buyer looking to find a city condo or you are a seasoned homeowner on the hunt for a lakeside getaway, UHL has a loan solution to match. If you’re ready to get pre-approved, reach out!