Profile of 2009 – 2010 First Time Home Buyer

The National Association of Realtors released information about First Time Home Buyers last week that showed some interesting trends!

93 percent of those surveyed in 2009 – 2010 reported that they purchased using one of the first-time buyer tax credits. (Who’s surprised??? Nope, we’re not surprised either!)
Ninety-five percent chose a fixed-rate mortgage.
The median age of first-time buyers was 30 and the median income was $59,900. (This part was a little surprising!) The typical first-time buyer purchased a 1,540 square foot home costing $152,000 (bet they were keeping their total payments under the $1000 mark)
First-time buyers who made a downpayment used a variety of sources: 74 percent used savings, 38 percent received a gift (or a loan) from a friend or relative, (READ: their parents) Eight percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds.
Women accounted for 1 in 5 purchases, and single Males made the largest leap in the survey ever – which was attributed to the tax credit.
Fifty-six percent of entry level buyers financed their purchase with an FHA home loan, while another 7 percent used the VA mortgage loan program. Even though this is a National Survey – we know that almost 10% of all First Time Home Buyers in NC used USDA Home Loan (100%) financing! 8o)
Forty-two percent said financing their first home was more difficult than expected and 9 percent had been rejected by a lender.
The vast majority of buyer respondents, 89 percent, searched online for a home. The median age of these buyers was 37, compared to 57 for those who did not.
Internet searchers have higher median incomes: $74,200 vs. $55,200. Most buyers who searched online (85 percent) used an agent to buy a home.

If you are a first time home buyer considering a purchase in NC, please call Steve and Eleanor Thorne, USDA home loans, FHA mortgages and VA Mortgage Loan Experts 919-649-5058. We have the best mortgage rates!