You know the Osh Kosh B’gosh 90’s kids who once played with Furbys and bopped their heads to the hit song “I don’t want to grow up, I’m a Toys R Us Kid?” Well, they’re all grown up now and finding it harder than ever to build credit.
According to a report by TransUnion, Millennials are the generation with the lowest credit score (625) compared to Generation X (650) and baby boomers leading the way (709). This means 43% of millennials don’t have good enough credit to land a mortgage and get approved for a home loan.
But before millennials think the “Tudor Style” they pretend-bought during a game of LIFE is out of the picture now, there’s still hope:
The world’s leading provider of credit ratings, S&P Global Ratings, recently predicted that in 2018 non-qualified mortgage (QM) loans will double and triple. This means that credit-challenged millennials will have access to loans that don’t need agency requirements.
Loan services like Carrington Mortgage offer special loans like The Carrington Loan for millennials who are borrowing with low-credit of below 640. This loan eliminates closing costs, appraisal fees or lender financing fees. For more information about this loan and other loans for borrowers with a low credit score, contact me today!
With the flexibility of a non-QM mortgage as well as loans created to serve the “underserved” market and first-time home-buyers, realtors will now be able to represent buyers that haven’t been able to qualify for home loans in the past. This will not only help the home-buyer create better informed decisions on the home-buying process with an expert realtor by their side but will also improve the growth of the housing market over time.
If you are a millennial or know a millennial who falls under the credit score of 640 or below, it looks like living out of mom and dad’s basement while you build up your credit is no longer necessary. It’s time to start looking (sorry, not sorry).
For more advice on credit for millennials and more, contact me today!