HUD Articles

Why HUD Homes are a Good Purchase for Millennials

As the millennial generation becomes a huge part of the 18-34 home buying population for now and for years to come, it is vital that real estate professionals understand what this group is looking for and the challenges they face.

Most millennials are either renting or are living with their parents. Most do not believe that homeownership is even possible at this stage of their life due to student loans, debt, insufficient credit  history, credit score, insufficient income, etc.

Reaching out to this group is vital to the future of a real estate professional. And what better way than with the programs that HUD offers and the different FHA loans that are available in our area.  The FHA $100 down program is available in the Carolinas and is so underutilized.  FHA $100 down financing can be used to purchase any HUD home. Of course, some lenders require a minimum loan amount to lend. Even that issue can be resolved if a the buyer goes with the FHA 203K renovation loan to “wrap into the loan” any desired or needed repairs which then would bring the loan amount up to the minimum requirements for most lenders.  The renovation loans can be used for merely cosmetic repairs all the way up to room additions. And yes, you can use the $100 down payment with the renovation loan. The best of both worlds!

Now that you have the perfect product for the millennial, it is also good to know what they are looking for in a real estate agent. Millennials are very tech savvy and are expert researchers. They will most likely look you and your company up online before meeting with you. Online reviews, market knowledge and sales history plays a large part in their research.  They gather most of their information on the properties online as well. What they are wanting in a real estate agent is someone who is also computer literate and that they can trust to strategize and advise them throughout the homebuying process.

The good thing about millennials is that they are very loyal to an agent they can trust as a strategic partner and you will most likely have a client for life. They tend to leave online reviews and recommend their agent to others.

If you are new to the HUD Sales process, please check out the classes offered on the home page by HUD’s listing agents!

Submitted by Gibbs Realty and Auction Co., Inc