First-time home buyers are on the rise this year, and according to new data from the National Association of Realtors Home Buyer and Seller Generational Trends report, millennials are the largest group of home buyers. The study found that 32 percent of all buyers are 34 and younger, part of the millennial generation. This is the second consecutive year that millennials are the largest group of home buyers.
The many changes mentioned in our previous blog, First-Time Home Buyers on the Rise in 2015, are helping millennials step into the housing market for the first time. The Federal Housing Administration (FHA) mortgage insurance premium decrease will save first-time buyers on their mortgage payments and the lower down payment incentives are allowing millennials to step into the housing market sooner than expected. Lower down payment incentives allow buyers to not have to save for a 20 percent down payment; down payments can be as low as 3 percent for conventional loans and 3.5 percent for FHA loans for first-time buyers. The low down payment options being offered by lenders is a large contributing factor to millennials growing confidence in entering the housing market.
Many additional factors are contributing to first-time home buyers entering the market: rising entry level pay, low mortgage rates, and growing confidence in the overall market and economy.
As a national commercial and residential appraisal management company, Valuation Management Group (VMG) will be able to assist lenders with all of their appraisal management services. VMG handles the entire appraisal process for commercial and residential appraisals, from engaging the appraiser to completing robust commercial appraisal reviews and residential appraisal reviews. The Valuation Management Group appraisal review ensures an appraisal conforms to appraisal regulations and is acceptable for the mortgage lender. VMG is proud to be able to assist financial institutions in maintaining appraisal compliance and appraiser independence.
Valuation Management Group is a national, full service appraisal management company that manages the appraisal process for community banks, mortgage bankers and credit unions. We offer the full array of commercial and residential appraisal products and services. We take the appraisal process from ordinary to extraordinary.