Skip to main content
_FB_2018-Icons-finalized-cleaned-up_new_FB_2018-Icons-finalized-cleaned-up_newGroup 9
Back
Scroll to top

Millennials in the Home Market

2 min read
Couple eating noodles with moving items in the background

Ready to talk to an expert?

Much has been made about how millennials—“a group of 80-million-plus young adults born roughly between 1980 and 1996” according to the New York Times—are reshaping the world as they enter adulthood. One of the most adult decisions they can make is, of course, buying a house.

We spoke to First Bank’s mortgage team about how Generation Y approaches the American dream.

How are millennials thinking about the housing market?

They’re concerned about interest rates going up, and so they’re trying to get into the market now with the lowest possible down payment.

The USDA, if the area allows it, offers loans for up to 100% with no down payment. The FHA offers a loan that’s 3.5% down with down payment assistance. And Fannie Mae has loosened some guidelines. They offer a 95% loan that allows the remaining 5% to be a gift from someone who isn’t the homebuyer.

Are millennials nervous about buying homes, given what happened to the housing market a few years ago?

Some are nervous because they don’t have the jobs they thought they would have. But many millennials are eager to get into the market before prices go back up.

What are millennials looking for in a home?

Many of them are looking for the convenience of being close to urban amenities. They’re not as interested in the suburbs. They’re looking for open space to entertain—an open floor plan.

It’s also worth noting that millennials are more likely to have pets than children.

How do millennials approach the home buying process?

They’ve often done their homework and educated themselves about mortgages on the Internet. And some are going to places like Zillow.com to see what the estimated housing prices are in their potential neighborhoods.

Any advice you’d give to millennials?

Understand that it’s not as easy to flip a house as it once might have been.

But if you do find a house that you want to add to or renovate—say by creating a more open floor plan—we can help you by rolling the addition or renovation costs into your loan.

Ready to talk to an expert?

Share:
First Bank’s Good To Know Logo
Sign up for our newsletter and be the first to know about new tips, insights, and products from First Bank.
First Bank may use this email address to contact you about products, services, and promotions.

You may be interested in...

Habitat Group Photo Q&A: What Should I Consider When Selecting a Bank? When looking for the perfect bank, ask yourself, “Does this bank complement my lifestyle and financial goals?” At First Bank, we believe it should. You may also want to consider the following 4 criteria: Community Involvement Longevity & Stability Personalized Customer Service Breadth of Financial Service   1. Community Involvement When comparing your banking options, consider how your prospective bank is involved in your community. If local economic growth is important to you, prioritize a community-focused bank that is committed to reinvesting in local economic development. An actively involved bank can provide your neighbors with increased access to small business loans, mortgages, charitable donations, and overall financial wellness. For example, First Bank has invested over $1.2 billion in community development loans to revitalize low- and moderate-income areas. Additionally, in 2022, we donated $500,000 to support education-focused initiatives across the Carolinas. As First Bank grows, so do the communities we serve. 2. Longevity & Stability Do your research – find a bank with a track record of success and the ability to remain steadfast during uncertain economic times. Consider how long the bank has been established and how they plan for growth into the future. First Bank began in 1935 during the height of the Great Depression in order to safeguard the hard-earned funds of local farmers, community members, and business people. Throughout our organization’s 87-year history, we have seen recessions, depressions, and many banks come and go. While we stay current with modern banking trends, we will continue to operate our company with an intense focus on safety and soundness, so our customers, clients, partners, investors, and associates know that we will provide safe and stable long-term success. 3. Personalized Customer Service It’s important to think about what your perfect banking relationship would look like. Do you value a tailored in-person experience or do you prefer online banking services with less one-on-one interaction? Regional banks, like First Bank, have the ability to offer the best of both worlds. The personal relationships that we develop within our communities help us advocate for our customers’ best interests. We can offer competitive rates and recommend the best financial tools to the right businesses, municipalities, and families at the right time. When you’re traveling 3 min read
First Bank logo
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognizing you when you return to our website and helping our team to understand which sections of the website are the most popular and useful.