GMAC survey finds consumers want more home financing educationmortgagepress.combarriers to homeownership, consumer concerns, financial security
GMAC Mortgage has released the results of its first quarterly
customer survey, which polled 1,000 consumers nationwide to assess
their barriers to homeownership and homeownership education needs.
The survey found that 24 percent of consumers cite a lack of
financial security as a primary obstacle to homeownership, while 23
percent named saving for a down payment. Together, respondents find
these financial issues to be nearly as challenging as trying to
find the right house to meet their needs (37 percent).
Additionally, the survey revealed that consumers see a need for
greater homeownership education, particularly regarding the
numerous financial aspects of the home buying process. The survey
found that consumers were more likely to want to learn new
information about financial home buying issues than real estate and
house-hunting concerns. Specifically, they indicated the need for
greater education in regard to:
•Finding the right loan (20 percent)
•Managing debt (18 percent)
•Evaluating credit (17 percent)
•Finding the right house (16 percent)
•Saving for a down payment (10 percent)
•Finding a qualified real estate agent (7 percent)
Credit concerns
Credit concerns and the evaluation of FICO scores also dominated
the survey results, as 12 percent of consumers named past or
current credit problems as an obstacle to homeownership. The
importance of achieving good credit early in life is clearly
understood by younger consumers, as 43 percent of survey
respondents aged 18 to 24 want to learn more about FICO scores and
the evaluation of credit during the home financing process, which
is significantly higher than the 17 percent average for all
consumers.
Financial stability
Consumers aged 25 to 34 were more likely to cite saving for a down
payment (36 percent) and achieving financial security (39 percent)
as an obstacle to homeownership than their older counterparts.
Notably, a household income of $75,000 emerged as the financial
dividing line for consumers who felt financially stable enough to
buy a home and those who did not. An average of 30 percent of
consumers with a household income of less than $75,000 cited a lack
of financial stability as their obstacle to achieving
homeownership.
Comparably, only 14 percent of households earning more than
$75,000 per year viewed this as their primary barrier.
For more information, visit www.gmacmortgage.com.
