Millennials continue to stake the majority claim in housing, with the Ellie Mae Millennial Trackerâ„¢ for January showing millennials comprising 84 percent of closed loans, 35 percent of which were FHA loans.
“As the purchase market heats up, we will continue to watch the FHA purchase trend amongst millennials,” says Joe Tyrrell, executive vice president of Corporate Strategy for Ellie Mae. “It is not surprising to see millennial borrowers leverage FHA loans because they typically offer lower down payments and lower average FICO score requirements than conventional loans. As more millennials enter the market, we expect to see the popularity of FHA loans continue to increase.”
The housing markets with the most millennial activity based on closed loans in January, according to the Tracker, were Enterprise, Ala., And Owensboro, Ky. It took millennials an average 49 days to close, with purchases shorter at 46 and refinances longer at 58.
Overall, the average millennial FICO score was 724. The average FICO score for conventional loans was 748; the average FICO score for VA loans was 734; and the average FICO score for FHA loans was 690.
Source: Ellie Mae
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