Infographic: Who Are Today's First-Time Homebuyers?

Who Are Today's First-Time Homebuyers?

AND HOW ARE THEY SAVING?

With the country well on its way to economic recovery, first-time homebuyers are poised to make a comeback. Here's a look at who is buying and what steps they're taking to find the right homes for their budget:

WHO ARE TODAY'S FIRST TIME BUYERS?

married couples

54%

single 29%

unmarried couples1

15%

Median age of first-time homebuyers is 311

Median income of first-time homebuyers is1

$68,300

First-time buyers plan to stay in their homes

for an average of

10 YEARS

65%

33 and under MILLENNIALS2

27%

34-48 GENERATION X

7%

49-67 BABY BOOMERS

53%

said their primary reason for purchasing was the desire to own a home of their own3

WHOHWO ARE BTOUDYEARYS'SFFIINRDSITNTGIMHEOMBUEYS?ERS?

On average, all homebuyers searched for 10 weeks and viewed 10 homes4

88%

purchased their home through a real estate agent or broker4

What did they compromise on?5

30%

25%

27%

20%

25%

15%

19%

10%

5%

0% Size of home

Price of home

Condition of home

18%

Lot size

18%

18%

Style of home

9%

6%

Distance from job

Distance from friends

or family

Neighborhood quality

HWOHWO ARE THOEDYAYF'ISNFAINRSCTINTGIMTEHEBIURYHEORSM?ES?

First-time buyers purchased a home spanning a median of

1,570 SQUARE FEET,6

costing an average of

$169,0003

95%

of first-time buyers financed their home4

How they paid for the down payment*3

Used their own savings

Used a gift from a friend or relative

Sold stocks or bonds, or used part of their 401(k) fund

Borrowed from a relative or friend

Financed their mortgage with an FHA mortgage

Used the Veterans A airs (VA) loan program

*USING ONE OR MORE OF THESE METHODS

Most common issues that delayed saving for a home:5

The average first-time buyer paid

3.5%

of the home's value for a down payment (the minimum required for

Federal Housing Administration (FHA) loans)7

81%

26%

10%

6%

35%

9%

Student loans

Credit card debt

Car loans

Childcare expenses

Healthcare costs

HOW TO SAVE FOR YOUR OWN HOME

#1: KEEP AN EYE ON YOUR CREDIT

? Make all your bill payments on time, decide when to splurge and when to save, and check your credit score.

? Know that paying everything on time doesn't necessarily mean your credit is impeccable. If the amount you're spending is close to your credit limit, your credit score may be negatively a ected.

? Understand that it takes time to improve your credit score, and be patient and diligent while working to elevate that number.

#2: BE HONEST ABOUT YOUR BUDGET

? Keep your housing expenses below 28 percent of your gross income to stay within your means.

? Consider additional payments such as closing costs and homeowners fees.

? Be open to compromise. Decide what you absolutely must have in your home, and what you could live without.

#3: DOCUMENT EVERYTHING

? If you're getting financial help from a parent or relative, document it for the IRS. Track where your money came from so loan providers can do the same.

1. "Presentation: Profile Types of Home Buyers," Nov. 17, 2014, National Association of Realtors 2. "NAR Home Buyer and Seller Generational Trends," March 2014, National Association of Realtors 3. "NAR Annual Survey Reveals Notable Decline in First-Time Buyers," Nov. 3, 2014, National Association of Realtors 4. "Highlights from the 2014 Profile of Home Buyers and Sellers," Nov. 3, 2014, National Association of Realtors 5. "John L. Scott Convention on the 2014 Profile of Home Buyers and Sellers," Oct. 30, 2014, National Association of Realtors 6. "Types of Recent Home Buyers," Nov. 7, 2014, National Association of Realtors Research Division 7. "Let FHA Loans Help You," May 20, 2015, U.S. Department of Housing and Urban Development 8. "5 Tips for First-Time Homebuyers," March 11, 2015, Bankrate 9. "Top Tips for First-Time Home Buyers," Investopedia

? 2018 SunTrust Banks, Inc.

Equal Housing Lender. SunTrust Mortgage, Inc.

Equal Housing Lender. SunTrust Bank - NMLS #93471. SunTrust Mortgage is a tradename of SunTrust Bank and loans are made by SunTrust Bank. ?2018. SunTrust Banks, Inc. SUNTRUST MORTGAGE and the SunTrust Mortgage logo are trademarks of SunTrust Banks, Inc. All rights reserved.

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