Millennials Still Prefer Conventional Home Loans
March 8, 2018
Approximately two-thirds of all closed home loans by Millennial borrowers in January were conventional loans, according to new data from Ellie Mae.
The 67 percent rate for closed loans by Millennials was the highest percentage recorded in two years. Purchases accounted for 81 percent of all closed loans to Millennials during January, down from 84 percent the month prior, and refinances accounted for 18 percent, up from the 15 percent level that was maintained since October 2017. The average FICO score of Millennial borrowers who closed loans in January increased to 723, up from 722 in December.
“Historically we have seen Millennials look to FHA programs to help address their homebuying needs, but in the past two months, FHA loans have represented less than 30 percent of the total loans for Millennials,” said Joe Tyrrell, Executive Vice President of Corporate Strategy for Ellie Mae. “We view this as an indication that more Millennials are qualifying for conventional mortgages.”
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