Qualifying Opportunities for First-Time Homebuyers

Creative Qualifying Opportunities Sought by First-Time Homebuyers

As rent prices continue to outpace monthly mortgage payments, more first-time homebuyers are being prompted to enter the housing market. With home prices on the rise and first-time homebuyers facing increased student loan debt, more creative ways to save and qualify for homeownership are being pursued by potential homebuyers. U.S. News stressed the significant role parents play in first-time homebuyers' ability to purchase a home. Over 17% of parents plan to help millennial-aged children finance a home by gifting a down payment, helping to cover closing costs, even co-signing their loan. These first-time homebuyers represent 32% of the market, one of the biggest groups of buyers in America, according to a March 2015 report from the National Association of Realtors.

First-time homebuyers are now seeking creative ways to qualify for home financing:

• Parents providing gift funds for closing costs or down payment sources
• Multigenerational households becoming more mainstream; combining baby boomers wishing to downsize and millennials who have not saved quite enough to buy
• More parents co-signing loans to help children meet credit or income qualifying requirements
• Parents buying a home and renting it back to their children until they are able to refinance onto the loan or purchase it directly
• Co-buying arrangements happening more frequently between friends or siblings to own a home jointly; this also includes first-time property investors taking advantage of hot housing markets
• Combining gift funds from relatives with eligible grant funds for larger down payment sources

Today's first-time homebuyer is looking for resourceful financing options. They're taking advantage of creative ways to avoid throwing money away as long-term renters and choosing to build equity by investing in a home; allowing them to break even in less than two years.

PRM has a multitude of home financing options available to make homebuying a reality and find the best financing solution for their individual situation. Contact us today for more information!