N E W I N S I G H T S O N

M I L L E N N I A L S* & H O M E B U Y I N G

5

The majority of potential buyers & non-buyers are not sure which mortgages they want or which are best for home owners.

33% of potential buyers plan to secure a 30-year mortgage, versus a fixed-rate (25%) or 15-year mortgage (19%). 48% of non-buyers couldn’t identify a product that would best match their potential needs.

Most potential buyers have misconceptions about down payment requirements.

More than half of potential buyers (53%) say they haven’t purchased yet because they don’t have enough money for a down payment.

Furthermore, 77% of potential buyers believe they need to put more than 5% down in order to purchase a home.

Potential buyers want to understand the ‘total cost’ of homeownership.

Over 50% of potential buyers believe that a step-by-step guide to the homebuying process would be “extremely helpful”. Additionally, 69% of buyers believe that information about the ‘total cost’ of homeownership in their area would raise confidence in purchasing a home.

Owners and potential buyers see homeownership as a measure of personal success.

The majority of homeowners and potential buyers (64%) feel that a person should own his/her own home by the age of 30. Half of homeowners surveyed (50%) purchased their first home by the age of 25.

Millennials trust financial advice from their parents the most when buying a home.

80% of owners say they trusted their parents to provide them with information about financing a home.

1

2

3

4

5

* For the purposes of this study, millennials are defined as those born between 1980 and 1998. According to the 2016 census estimate, millennials currently represent more than 84 million people or 26% of the U.S. population.

To get the complete study and steps you can take to educate millennials on their homebuying options, visit: essent.us/millennialstudy.

EssentIQ was created to educate millennials and other first-time homebuyers who may not be aware of homebuying options that are available to them outside of the conventional 20% down. Through education and accessible resources, such as EssentIQ, homeownership and the American dream may be more

achievable than many millennials think.

EssentIQ is free and also available en español at essent.us/essentiq.

Mortgage Insurance provided by Essent Guaranty, Inc.® 2017 Essent Guaranty, Inc., All rights reserved. | Two Radnor Corporate Center, 100 Matsonford Road, Radnor, PA 19087 | essent.us

EGI-6008.180 (05/17)

Millennials want to know more about buying a home before they enter the purchasing process.

Only 13% of potential buyers feel extremely knowledgeable about financially preparing to buy a home. 93% of potential buyers say it would be helpful to have a step-by-step guide that walks them through the homebuying process.

Millennials and non-buyers want more stability in their lives before they purchase a home.

More than half of non-buyers believe they’ll be ready to purchase a home when they feel more established in their careers. More than one-third of non-buyers believe they’ll be ready when they feel comfortable committing to staying in one place.

Age and perceived life stage play a key role in many millennials’ desire to purchase a home.

More than 50% of potential buyers consider buying a home because it feels like the “right next step” at their age. Nearly half of current owners who are millennials say they purchased a home for this reason.

Owners and potential buyers see homeownership as a measure of personal success.

64% of homeowners and potential buyers feel that a person should own his/her own home by the age of 30. Half of owners in our survey purchased their first home by the age of 25.

Once millennials are educated about the homebuying process, their negative emotions diminish significantly .

More than one-third of non-buyers describe the homebuying process as “overwhelming” and “nerve-racking” Once educated about the homebuying process, nearly half of potential buyers and owners associate homebuying with excitement and happiness

N E W I N S I G H T S O NM i l l e n n i a l s’* E m o t i o n a l D r i v e r s

& B a r r i e r s t o H o m e o w n e r s h i p

5

1

2

3

4

5

* For the purposes of this study, millennials are defined as those born between 1980 and 1998. According to the 2016 census estimate, millennials currently represent more than 84 million people or 26% of the U.S. population.

To get the complete study and steps you can take to educate millennials on their homebuying options, visit: essent.us/millennialstudy.

EssentIQ was created to educate millennials and other first-time homebuyers who may not be aware of homebuying options that are available to them outside of the conventional 20% down. Through education and accessible resources, such as EssentIQ, homeownership and the American dream may be more

achievable than many millennials think.

EssentIQ is free and also available en español at essent.us/essentiq.

Mortgage Insurance provided by Essent Guaranty, Inc.® 2017 Essent Guaranty, Inc., All rights reserved. | Two Radnor Corporate Center, 100 Matsonford Road, Radnor, PA 19087 | essent.us

EGI-6008.160 (06/17)

Millennials have limited understanding of how credit scores work.

More than 50% of respondents know that having high credit card balances will negatively impact their credit scores. More than 65% of respondents know that even small debt collections can have a serious impact on their credit.

Millennials are less knowledgeable about how other factors like bankruptcies and student loans can impact their credit scores.

Only 42% of non-buyers realize that a bankruptcy will stay on their credit report for 10 years. Only 38% of non-buyers understand that student loan debt significantly contributes to lowering credit scores.

The majority of millennials believe that credit scores reflect their history of paying rent and utilities on time.

More than half of all respondents (non-buyers, potential buyers and current homeowners) believe that credit scores reflect a person’s history of paying rent and utility bills on time.

ALThough there is confusion around how credit scores work, millennials are actively trying to improve scores in preparation to purchase a homE.

46% of potential buyers say they are currently trying to improve their credit scores to financially prepare for purchasing a home. 58% of potential buyers would welcome more information about the credit requirements needed to secure a mortgage.

Millennials believe credit scores reflect a person’s ability to buy a home, however, they THINK credit scores play too important of a role in securing a mortgage.

59% of respondents agree that credit scores accurately reflect a person’s financial ability to buy a home. 60% of potential owners, and 59% of current home owners, believe that credit scores play too large of a role in a person’s ability to secure a mortgage.

N E W I N S I G H T S O N

M I L L E N N I A L S* & C R E D I T S C O R E S

5

1

2

3

4

5

* For the purposes of this study, millennials are defined as those born between 1980 and 1998. According to the 2016 census estimate, millennials currently represent more than 84 million people or 26% of the U.S. population.

To get the complete study and steps you can take to educate millennials on their homebuying options, visit: essent.us/millennialstudy.

EssentIQ was created to educate millennials and other first-time homebuyers who may not be aware of homebuying options that are available to them outside of the conventional 20% down. Through education and accessible resources, such as EssentIQ, homeownership and the American dream may be more

achievable than many millennials think.

EssentIQ is free and also available en español at essent.us/essentiq.

Mortgage Insurance provided by Essent Guaranty, Inc.® 2017 Essent Guaranty, Inc., All rights reserved. | Two Radnor Corporate Center, 100 Matsonford Road, Radnor, PA 19087 | essent.us

EGI-6008.163 (06/17)

1

2

3

4

5

N E W I N S I G H T S O NM I L L E N N I A L S* & H O M E B U Y I N G

5

EssentIQTM was created to educate millennials and other first-time homebuyers who may not be aware

of homebuying options that are available to them outside of the conventional 20% down. Through

education and accessible resources, such as EssentIQ, homeownership and the American dream may

be more achievable than many millennials think.

EssentIQ is free and also available en español at essent.us/essentiq.

Mortgage Insurance provided by Essent Guaranty, Inc.® 2017 Essent Guaranty, Inc., All rights reserved. | Two Radnor Corporate Center, 100 Matsonford Road, Radnor, PA 19087 | essent.us

EGI-6008.179 (05/17)

Homeownership, once an expected goal of young professionals, now seems out of reach for many

millennials who are uncertain they have the financial means to invest in a home. A recent survey

by Essent, which contained a total of 2,000 millennials across the U.S., generated several revealing

statistics on millennials and homeownership. From the survey, Essent identified five key insights

that loan officers can utilize to help educate millennials about the homebuying process.

To get the complete study and steps you can take to educate millennials on their homebuying

options, visit: essent.us/millennialstudy.

T h e m a j o r i t y o f p o t e n t i a l b u y e r s & n o n - b u y e r s a r e n o t s u r e w h i c h m o r t g a g e s t h e y w a n t o r w h i c h a r e b e s t f o r

h o m e o w n e r s

of potential buyers plan to secure a

30-year mortgage, versus a fixed-rate (25%)

or 15-year mortgage (19%)

M O S T P O T E N T I A L B U Y E R S H A V E M I S C O N C E P T I O N S A B O U T D O W NP A Y M E N T R E Q U I R E M E N T S

77% of potential buyers believe they need

to put more than 5% down in order to

purchase a home

of potential buyers (53%) say they haven’t

purchased yet, because they don’t have

enough money for a down payment

more than half

of non-buyers couldn’t identify a product

that would best match their potential

needs

P o t e n t i a l b u y e r s w a n t t o u n d e r s t a n d t h e ‘ t o t a l c o s t ’o f h o m e o w n e r s h i p

O w n e r s a n d p o t e n t i a l b u y e r s s e e h o m e o w n e r s h i p a s am e a s u r e o f p e r s o n a l s u c c e s s

More than 50% of potential buyers

believe that a step-by-step guide to the

homebuying process would be

“extremely helpful”

69% of buyers believe that information

about the ‘total cost’ of homeownership

in their area would raise confidence in

purchasing a home

64% of homeowners and potential buyers

feel that a person should own his/her own

home by the age of 30

* For the purposes of this study, millennials are defined as those born between 1980 and 1998. According to the 2016 census estimate,millennials currently represent more than 84 million people or 26% of the U.S. population.

50% of owners in our survey purchased

their first home by the age of 25

M i l l e n n i a l s t r u s t f i n a n c i a l a d v i c e f r o m t h e i r p a r e n t st h e m o s t w h e n b u y i n g a h o m e

of owners say they trusted their parents to

provide them with information about

financing a home 80%

33% 48%

one-third of non-buyers believe they’ll be

ready when they feel comfortable

committing to staying in one place

of non-buyers believe they’ll be ready to

purchase a home when they feel more

established in their careers

more than half

1

Homeownership, once an expected goal of young professionals, now seems out of reach for many

millennials who are uncertain they have the financial means to invest in a home. A recent survey by

Essent, which contained a total of 2,000 millennials across the U.S., generated several revealing

statistics surrounding the emotional barriers and drivers when purchasing a home. From the

survey, Essent identified five key insights that loan officers can utilize when assisting millennials in

the homebuying process.

To get the complete study and steps you can take to educate millennials on their homebuying

options, visit: essent.us/millennialstudy.

M i l l e n n i a l s w a n t t o k n o w m o r e a b o u t b u y i n g a h o m eb e f o r e t h e y e n t e r t h e p u r c h a s i n g p r o c e s s

Only 13% of potential buyers feel extremely

knowledgeable about financially preparing

to buy a home

93% of potential buyers say it would be

helpful to have a step-by-step guide that

walks them through the homebuying process

N E W I N S I G H T S O NM i l l e n n i a l s’* E m o t i o n a l

D r i v e r s & B a r r i e r s t o H o m e o w n e r s h i p

5

More than 50% of potential buyers

consider buying a home because it feels

like the “right next step” at their age

Nearly half of current owners who are

millennials say they purchased a home for

this reason

2M i l l e n n i a l s a n d n o n - b u y e r s w a n t m o r e s t a b i l i t y i n t h e i rl i v e s b e f o r e t h e y p u r c h a s e a h o m e

3 A g e a n d p e r c e i v e d l i f e s t a g e p l a y a k e y r o l e i n m a n ym i l l e n n i a l s ’ d e s i r e t o p u r c h a s e a h o m e

4 O w n e r s a n d p o t e n t i a l b u y e r s s e e h o m e o w n e r s h i p a s am e a s u r e o f p e r s o n a l s u c c e s s

5 O n c e m i l l e n n i a l s a r e e d u c a t e d a b o u t t h e h o m e b u y i n g p r o c e s s , t h e i r n e g a t i v e e m o t i o n s d i m i n i s h s i g n i f i c a n t l y

* For the purposes of this study, millennials are defined as those born between 1980 and 1998. According to the 2016 census estimate, millennials currently represent more than 84 million people or 26% of the U.S. population.

EssentIQ was created to educate millennials and other first-time homebuyers who may not be aware

of homebuying options that are available to them outside of the conventional 20% down. Through

education and accessible resources, such as EssentIQ, homeownership and the American dream may

be more achievable than many millennials think.

EssentIQ is free and also available en español at essent.us/essentiq.

Mortgage Insurance provided by Essent Guaranty, Inc.® 2017 Essent Guaranty, Inc., All rights reserved. | Two Radnor Corporate Center, 100 Matsonford Road, Radnor, PA 19087 | essent.us

EGI-6008.159 (06/17)

of homeowners and potential buyers feel

that a person should own his/her own

home by the age of 30

of owners in our survey purchased

their first home by the age of 25

50%64%

34% of non-buyers describe the

homebuying process as “overwhelming”

and “nerve-racking”

50% of potential buyers and owners associate

homebuying with excitement and happiness

once educated about the homebuying process

12345

of surveyed respondents (non-buyers, potential buyers and

current homeowners) believe that credit scores reflect a

person’s history of paying rent and utility bills on time

more than half

1

Homeownership, once an expected goal of young professionals, now seems out of reach for many

millennials who are uncertain they have the financial means to invest in a home. A recent survey by

Essent, which contained a total of 2,000 millennials across the U.S., generated several revealing

statistics that highlight misconceptions around credit and credit scores. From the survey, Essent

identified five key insights that can be used to educate and correctly inform millennials about credit,

credit scores and the homebuying process.

To get the complete study and steps you can take to educate millennials on their homebuying

options, visit: essent.us/millennialstudy.

M i l l e n n i a l s h a v e l i m i t e d u n d e r s t a n d i n g o f h o w c r e d i ts c o r e s w o r k

M i l l e n n i a l s a r e l e s s k n o w l e d g e a b l e a b o u t h o w o t h e r f a c t o r s l i k e b a n k r u p t c Y a n d s t u d e n t l o a n s c a n i m p a c t

t h e i r c r e d i t s c o r e s

of respondents know that having high

credit card balances will negatively impact

their credit scores

of respondents know that even small debt

collections can have a serious impact on

their credit

50% 65%

N E W I N S I G H T S O NM I L L E N N I A L S* & C R E D I T S C O R E S

5

2

3 M O S T m i l l e n n i a l s b e l i e v e t h a t c r e d i t s c o r e s r e f l e c tt h e i r h i s t o r y o f p a y i n g r e n t a n d u t i l i t i e s o n t i m e

A L T h o u g h t h e r e i s c o n f u s i o n a r o u n d h o w c r e d i t s c o r e s w o r k , m i l l e n n i a l s a r e a c t i v e l y t r y i n g t o i m p r o v e s c o r e s

i n p r e p a r a t i o n t o p u r c h a s e a h o m e4

M i l l e n n i a l s b e l i e v e c r e d i t s c o r e s r e f l e c t a p e r s o n ’ s a b i l i t y t o b u y a h o m e , h o w e v e r , t h e y T H I N K c r e d i t s c o r e s

p l a y t o o i m p o r t a n t o f a r o l e i n s e c u r i n g a m o r t g a g e5

Only 42% of non-buyers realize that a

bankruptcy will stay on their credit

report for 10 years

Only 38% of non-buyers understand that

student loan debt significantly contributes

to lowering your credit score

of potential buyers say they are currently

trying to improve their credit scores to

financially prepare for purchasing a home

of potential buyers would welcome more

information about the credit requirements

needed to secure a mortgage

46% 58%

59% of respondents agree that credit

scores accurately reflect a person’s

financial ability to buy a home

60% of potential owners, and 59% of current

home owners, believe that credit scores play

too large of a role in a person’s ability to secure

a mortgage

* For the purposes of this study, millennials are defined as those born between 1980 and 1998. According to the 2016 census estimate, millennials currently represent more than 84 million people or 26% of the U.S. population.

EssentIQ was created to educate millennials and other first-time homebuyers who may not be aware

of homebuying options that are available to them outside of the conventional 20% down. Through

education and accessible resources, such as EssentIQ, homeownership and the American dream may

be more achievable than many millennials think.

EssentIQ is free and also available en español at essent.us/essentiq.

Mortgage Insurance provided by Essent Guaranty, Inc.® 2017 Essent Guaranty, Inc., All rights reserved. | Two Radnor Corporate Center, 100 Matsonford Road, Radnor, PA 19087 | essent.us

EGI-6008.162 (06/17)