Millennials are usually defined as those having been born after 1980.
The Dallas-based firm's senior vice president, Linda Clampitt, noted that people in this generation have generally put off purchasing a home as they have faced the challenges of starting careers and high student loan debt. But the years of waiting have begun to wear thin and this generation is starting to move.
“They’ve delayed their entry into the housing market due to high unemployment and student loan debt,” Clampitt said. “However, for years now, they’ve lived in their parents’ homes or rented properties not quite fitting of their own desires and are starting to take the plunge into purchasing their first homes.”
In order to serve this population, Clampitt recommended that credit union add loans insured by FHA as part of their housing finance offerings, observing that Millennials often do not have large pools of money available for down payments but also don't want to put off their entry into the market.
“FHA is still a low down payment option for them and if you aren’t offering this product you must realize the necessity it is as this generation has a growing need for lending assistance,” the company said in a discussion of the opportunities and challenges brought by this generation.
Other strategies that CU Members Mortgage suggested credit unions deploy included educating these younger members about the possibilities and economics of home ownership with things like first time homebuyer seminars and calculators that can help them understand the costs of renting vs. buying.
Credit unions should also make sure as much of their home buying process is available online as possible.