FHA Loans for Millennials and Gen Xers

Some reports are saying that when it comes to homeownership, millennials – the trend-setting generation ranging in age from 18 to 34 – are not necessarily on board. Consider the following headlines over the past year:

  • Why Millennials are Staying Away from Homeownership Despite an Improving Economy – Los Angeles Times, March 2016
  • Why Millennials Aren’t Buying Houses – The Atlantic, August 2016
  • Don’t Blame Student Debt for The Lack of Millennial Home Ownership – Forbes, May 2016
  • To Buy or Not to Buy a Home? For Many Millennials, that’s the Question. – USA Today, May 2016

Meanwhile, some of those same reports have revealed that Generation X – the parents or much older siblings of millennials – are on board with homeownership, but struggling to make a comeback to the market. For some members of both generations, there may be a potential solution: the FHA loan program. By taking advantage of the Federal Housing Administration’s loan program, many millennials have become first-time homeowners and many Gen Xers have returned to homeownership.

About the FHA Loan Program

The Federal Housing Administration (FHA) is not a lender; it is a government agency that insures mortgage loans for homebuyers who require more flexibility to qualify. Additionally, FHA loans are not only for first-time homebuyers. The idea that FHA loans are only for first-timers is a common misconception; Gen Xers should be aware of this (particularly if they have owned a home in the past and are now renting, but looking to buy again).

How FHA Loans Help Millennials

According to the U.S. Census Bureau, homeownership among millennials is currently on the decline, down 0.7 percentage points to 34.1% of millennials owning a home. And according to data published on HousingWire.com, people under age 35 are the least confident that now is a good time to buy a home and approximately 50% of millennials are uncomfortable taking on a mortgage (with many saying they don’t believe they would qualify). Student loan debt was the number one reason cited for this lack of confidence.
At Wholesale Capital Corporation, we want to share with millennials some of our minimum requirements for FHA loan qualification Documented, consistent income from an approved source

  • A credit score of at least 580
  • The minimum required down payment of at least (the source of the down payment can also be a gift from an immediate family member)

How FHA Loans Help Gen Xers

The data for millennials (today’s 20-somethings) is in stark contrast to the homeownership rates of the previous generation’s 20-somethings, Generation X (now in their mid-30s to late 40s). According to U.S. Census Bureau data from 2004, Gen X was the most successful homeownership generation on record – but ironically, that same generation fell to the least successful generation of homeowners by 2015 due to the market collapse. In fact, Generation X has been called the largest group of “renters who used to be owners.”
At Wholesale Capital Corporation, we have helped Generation X borrowers return to homeownership – not just with FHA loans, but also with specific down payment assistance programs. One of them is the Golden State Finance Authority’s GSFA Platinum program, which is a down payment assistance grant available to borrowers within certain income limits. Ask your WCC loan officer for details.

Whether you are a millennial who is curious about your prospects for homeownership or a Gen Xer looking to re-enter the market, Wholesale Capital Corporation wants to speak with you. Contact us at (844) 571- 2777 and ask to speak with a loan officer regarding FHA loans. We will be glad to answer your questions.

Wholesale Capital Corporation is not affiliated with or acting on behalf of or at the direction of the Federal Housing Authority (FHA), the Department of Veterans Affairs (VA), or any government agency or government-sponsored entity. WCC is licensed by the California Bureau of Real Estate, Broker License #01147747 and CA Finance Lender’s License #603K610. Also licensed in Arizona by the Arizona Department of Financial Institutions, MB #0926199. Equal housing lender.