When It Comes to Buying a Home, Millennials Trust Mom and Dad Most
June 25, 2015
Here's something about millennials we bet you didn’t know: They actually listen to their parents' advice – especially when it comes to buying a home.
In fact, younger millennials turn to their parents and grandparents first as their most trusted source on homebuying – even before friends, Realtors or banks – according to a November 2014 survey commissioned by Freddie Mac and conducted online by Harris Poll*.
Part of the reason is as simple as proximity. It’s no secret that many millennials live at home with their parents where they have regular conversations and witness first-hand their parents’ financial habits.
To grow your purchase money business, consider reaching millennials through their parents. Help them understand the importance of encouraging their children to develop a strong credit history now.
According to a recent loanDepot survey, 17 percent of parents with children ages 18 to 35 expect to help their children buy a home within the next five years by contributing to a down payment or allowing them to move back home so they can save money for a down payment themselves.
We Can Help
Use the following products and resources to reach the millennial market.
- Customizable Marketing Flyer. Insert your own logo into our new customizable flyer that encourages parents of millennials to promote homeownership to their children.
- Home Possible AdvantageSM. Even with help from Mom and Dad, coming up with a down payment can be the stumbling block to homeownership. That’s where our 3 percent down payment mortgage Home Possible Advantage comes into play. Home Possible Advantage offers a maximum loan-to-value (LTV) ratio of 97 percent and total LTV ratio of 105 percent.
- Down Payment Assistance Options. Did you know that hundreds of millions of dollars are available for down payment assistance? Visit our Purchase Market Resource Center to get up-to-date on down payment and closing cost assistance programs available for your homebuyers.
- Read "Announcing My Home by Freddie Mac" from our Executive Vice President and Chief Administrative Officer Jerry Weiss. In honor of June's National Homeownership Month, we have launched a consumer website to answer questions about the benefits of homeownership.
- Add your logo to our new customizable flyer to promote affordable lending options to your customers. We have two versions available. Check out version one and version two.
- Read the loanDepot survey.
- Read "5 Tips to Help Recent Grads Build Credit."
*The survey was commissioned by Freddie Mac and conducted online by Harris Poll November 13-17, 2014, among 2,014 U.S. adults (aged 18+). See the survey’s complete methodology (including weighting variables).