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!