The millennial generation is at last entering the home buying market. These buyers however, are not making the traditional steps of saving their cash for the 20% down payment. In January, 65% of first time buyers made cash down payments of 6% or less. It seems that the costs of the necessary mortgage insurance, which could possibly add hundreds of dollars to their mortgage payment, are not a concern.
As a matter of fact, in January 62% of all buyers, in all age ranges, made cash down payments of less than 20%.
Millennials accounted for 84% of all home purchases in January/
FHA loans, which typically allow lower credit scores along with the low down payments comprised 35% of all loans in January.