Many young "would-be" Vero Beach homebuyers are finding themselves in a position that young Vero Beach homebuyers haven't been in before.
Statistics tell us there aren't as many young Vero Beach homebuyers as there used to be. Thirty-six percent of American homeowners are 35 and younger, the lowest on record since 1982, when the census's Housing Vacancy Survey began tracking homeownership by age. Those age 65 and older have a much higher rate of homeownership – 80 percent – but that's expected. The longer you live, the more time you've had to save and buy a house.
Many young Vero Beach homebuyers are beginning to wonder if they've done something wrong, and will they ever have a place of their own.
Financial Hurdles for Vero Beach Homebuyers Today
There are numerous factors pushing against millennials' plans to become Vero Beach homebuyers, including the economic hangover from the recession, but student loans are a major obstacle. Even if a lender doesn't see your massive student loan debt as something that could prevent you from making a mortgage payment, plenty of potential homeowners do.
Student loans have kept many potential Vero Beach homebuyers on the sidelines in recent years, and that trend is poised to get even worse going forward.
Other "would-be-buyers" are burdened with the lack of any credit history at all. Lenders generally see you as a risk if you have no credit history.
The best advice most lenders have for young Vero Beach homebuyers is to establish some credit as soon as possible. Getting a credit card will help, providing you don't abuse it and turn no credit into bad credit. The average millennial is two to four times more likely to make a late payment than older generations. So be careful with credit cards.
Your geography may be an obstacle. If you graduated from college and moved to Vero Beach with a lot of student debt and no other credit, your chances for becoming one of the few Vero Beach homebuyers in your age bracket to own their own home is slim.
If you have good credit, a good job, some funds for a down payment, and are not strapped with a lot of student debt, getting a mortgage may still be a challenge if you're using the bigger lenders. Sometimes it's better to shop the smaller lenders and credit unions. Oftentimes they may be willing to keep your mortgage "in-house" rather than re-selling your loan to Fannie Mae or Freddie Mac.
Smaller lenders can work around some circumstances and situations with less red tape, and without having to worry about guidelines on the loan resale market.
Consider an FHA loan. These loans are insured by the Federal Housing Administration and are for first-time Vero Beach homebuyers, although the FHA defines that as anyone who hasn't owned a house in three years. Generally, you'll need a down payment of at least 3.5 percent and a credit score of at least 580, although some lenders won't even begin a discussion unless you're in the mid-600s.
Talk to as many lenders as possible, and see what specific programs they offer and what the best rate around is. Go in person to a branch office and speak directly with a loan officer. Your chances of becoming one of the newest Vero Beach homebuyers is much better going that route than trying to apply online, or through a larger lender.
We can help you find the best lender for your set of circumstances. Contact us and let us help you get on the right path to becoming a Vero Beach homebuyer.