Good news for young professionals who are looking into purchasing their own homes. Banks are now loosening their down payment requirements for young professionals without enough savings but are high earners.
The real estate market has been closely watching the millennials on their decision to purchase their very first home. The millennials represent the highest percentage in the population, which makes them good candidates for homeownership.
Unfortunately, not all millennials can afford to buy a home for themselves, especially with the rising prices of houses in the real estate market and with the increasing requirement in the down payment.
However, a recent report from Realtor.com revealed that young professionals who have good credit ratings and high earnings can get their own home at a lower down payment.
The said loosening of down payments is applicable to HENRYs or "high earner, not rich yet." This means that a young professional who has good income and credit rating but does not have enough savings may still be approved for a mortgage.
The publication then stated an example about a young borrower who was interested in purchasing an over $1 million condominium in New York City. The borrower, who has a good credit rating, also has a well-paying job and has been working in the same company for eight years. The borrower, however, only had 10.1 percent available down payment because of the expenses incurred on renting an apartment in Manhattan.
The borrower was still approved because of the client's income and assets.
What about those who are not HENRYs (high earners)?
As previously reported on Realty Today, there are some ways in which you can quickly save up on your down payment in a matter of two years.
Changing your habits and routine may not sound as much, but these little steps can help bring about drastic changes and increase your savings.
