Down Payment is the Top Challenge for First-Time Homebuyers
Multiple national publications are reporting that down payments and a lack of affordable housing are the main hurdles for first-time homebuyers.
According to a survey of 200 mortgage industry professionals conducted by Genworth Mortgage Insurance, saving for a down payment (46 percent) and the shortage of affordable homes on the market (35 percent) are the top challenges for first-time homebuyers. Respondents listed student debt (14 percent) and qualifying for a mortgage (five percent) as other common stumbling blocks.
Rohit Gupta, president and chief executive officer, Genworth Mortgage Insurance, told National Mortgage Professional that while a lack of affordable housing is environment-driven, other challenges “can be addressed via improved awareness on the various low-down-payment solutions available in today’s market.” Gupta also said that using “the right tools from both a product and educational standpoint” will help support first-time home buyers.
Despite these hurdles, mortgage executives still predict growth in the first-time homebuyer segment in 2018. More than half of the respondents (57 percent) think the segment will grow faster than the overall housing market.