FHA Is Better than Fannie Mae for Buyers with a FICO under 740 and Less than 5% Down!
This is just another reminder that FHA financing is often much better than conventional financing now because FHA lowered its mortgage insurance rates so much this year.
Boomers Reign Supreme
We have one of the most sophisticated marketing teams in the entire industry, as they employ the most advanced tech with extremely elaborate HubSpot and Salesforce buildouts, supercharged email and social media campaigns that roll nonstop, and backend analytics skills that make most other marketing teams look like cavemen.
BUT – we junked all that last week and now market solely with smoke signals, town criers, telegraph messages, and the occasional newspaper ad.
The reason??
Boomers are dominating the housing market again!
That was a point the NREP made in this recent video: Baby Boomer Real Estate Flex.
Boomers now represent 39% of all purchases, up from 29% of all purchases last year.
That increase was so huge from a statistical perspective that I had to blog about it.
But first, a few questions about boomers.
How do boomers change a lightbulb?
They don’t, they just keep talking about how great the old one was.
Why did the boomer cross the street?
To show how it’s done.
Why do boomers make horrible cashiers?
They’re afraid of change.
OK, bad jokes aside, the reason boomers are taking over the market is obvious: they have the equity, cash, and income to be able to afford to buy in this market, while many younger generations are now priced out.
Gen Z now represents only 4% of all purchases, and first-time buyers dropped from 34% of the market last year to only 26% this year.
Shift Your Marketing
So, the primary point that the NREP made in its video was this: you might want to refocus your marketing efforts, as your TikTok and Instagram marketing aimed at Gen Z is focusing on a very small segment of buyers right now.
Rent-To-Own?
Given how many first-time buyers are now priced out of the market, they might want to consider some “rent-to-own” options.
We work with a couple of “rent-to-own” firms that offer amazingly generous terms for buyers who are unable to buy on their own.
Our favorite option is Pathway Homes, but they focus mostly on Texas and are not in California. Hence, readers might also consider Divvy Homes.
I will blog about these firms in much more detail in the coming weeks, but I thought they were worth mentioning here simply because they represent such great opportunities for people who want a home of their own, but are priced out right now.
Jay Voorhees
Founder | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167
