HomeManaging Finances

Where do young buyers rely on older co-signatories to buy homes?

Where do young buyers rely on older co-signatories to buy homes?

fizkes / Shutterstock.com Editor's Note: This story originally appeared on Porch.After two years of high competition and rapidly rising prices in res

How Much Life Insurance Do I Need to Buy?
How To Buy Stocks Online For Free [Where To Invest]
8 Best Small-Cap ETFs to Buy in 2022

This post may contain affiliate links, which means that I may earn a commission if you click on the link & sign-up or make a purchase. You will NOT be charged extra for using the link, but it goes a long way in supporting this blog. I only recommend products or services that I have personally used or believe will add value to my readers.

Couple makes a mortgage payment
fizkes / Shutterstock.com

Editor’s Note: This story originally appeared on Porch.

After two years of high competition and rapidly rising prices in residential property, the market is finally seeing signs of cooling off.

While many buyers may be starting to feel relief, younger buyers are having a particularly difficult time in this market and may continue to struggle. The Millennial generation – Americans aged 26 to 41 – is currently in their peak home buying years, representing 43% of buyers, according to recent data from the National Association of Realtors.

Because they are earlier in their working lives, young buyers may have saved less to sit for a home, and they also tend to be first-time buyers, meaning they do not have existing home property available to help finance a purchase.

To overcome these challenges, some young buyers relied on older friends and family members with more financial resources to support a home purchase. Co-signatories are people who agree to be responsible for loan payments if the primary signatory fails.

To determine the states with the highest percentage of young homebuyers with an older co-signer, researchers at Porch analyzed the latest data from the Federal Financial Institutions Examination Council’s Mortgage Disclosure Act. The researchers ranked states according to the percentage of young homebuyers (34 years old or younger) with an older co-signer (55 years old or older). In the event of a tie, the state with the higher median property value for young home buyers with an older co-signatory is ranked higher.

Here are the statements where young buyers are likely to rely on an older co-signer.

15. Illinois

Modern farmhouse
Hendrickson Photography / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 0.919%
  • Median property value for young buyers with an older co-signer: $ 225,000
  • Median property value for all young buyers: $ 245,000
  • Median installment for young buyers with an older co-signer: $ 30,000
  • Median installment for all young buyers: $ 20,000

14. New Mexico

Santa Fe New Mexico
Sean Pavone / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 0.969%
  • Median property value for young buyers with an older co-signer: $ 215,000
  • Median property value for all young buyers: $ 215,000
  • Median installment for young buyers with an older co-signer: $ 50,000
  • Median installment for all young buyers: $ 30,000

13. Nebraska

Nebraska City Scene
Katherine Welles / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 0.997%
  • Median property value for young buyers with an older co-signer: $ 195,000
  • Median property value for all young buyers: $ 205,000
  • Median installment for young buyers with an older co-signer: $ 20,000
  • Median installment for all young buyers: $ 20,000

12. Rhode Island

House in Providence, Rhode Island
Laura Stone / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1,002%
  • Median property value for young buyers with an older co-signer: $ 315,000
  • Median property value for all young buyers: $ 295,000
  • Median installment for young buyers with an older co-signer: $ 50,000
  • Median installment for all young buyers: $ 30,000

11. Massachusetts

Provincetown, Massachusetts
Lewis Stock Photography / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1,018%
  • Median property value for young buyers with an older co-signer: $ 435,000
  • Median property value for all young buyers: $ 445,000
  • Median installment for young buyers with an older co-signer: $ 70,000
  • Median installment for all young buyers: $ 60,000

10. Oregon

Oregon Country Home
Rigucci / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1,059%
  • Median property value for young buyers with an older co-signer: $ 365,000
  • Median property value for all young buyers: $ 385,000
  • Median installment for young buyers with an older co-signer: $ 50,000
  • Median installment for all young buyers: $ 40,000

9. New Jersey

Morristown, New Jersey
mandritoiu / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1,079%
  • Median property value for young buyers with an older co-signer: $ 365,000
  • Median property value for all young buyers: $ 375,000
  • Median installment for young buyers with an older co-signer: $ 60,000
  • Median installment for all young buyers: $ 50,000

8. Vermont

House in Derby Line, Vermont, in the Fall
Richard Cavalleri / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1,080%
  • Median property value for young buyers with an older co-signer: $ 215,000
  • Median property value for all young buyers: $ 265,000
  • Median installment for young buyers with an older co-signer: $ 40,000
  • Median installment for all young buyers: $ 30,000

7. Utah

House in 1991
Matthew Thomas Allen / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1,081%
  • Median property value for young buyers with an older co-signer: $ 335,000
  • Median property value for all young buyers: $ 335,000
  • Median installment for young buyers with an older co-signer: $ 40,000
  • Median installment for all young buyers: $ 30,000

Nevada

MaxFX / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1.159%
  • Median property value for young buyers with an older co-signer: $ 325,000
  • Median property value for all young buyers: $ 325,000
  • Median installment for young buyers with an older co-signer: $ 50,000
  • Median installment for all young buyers: $ 30,000

5. Montana

Missoula, Montana
Jon Bilous / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1.176%
  • Median property value for young buyers with an older co-signer: $ 295,000
  • Median property value for all young buyers: $ 295,000
  • Median installment for young buyers with an older co-signer: $ 50,000
  • Median installment for all young buyers: $ 30,000

4. New York

Buffalo New York Homes
Richard Cavalleri / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1.317%
  • Median property value for young buyers with an older co-signer: $ 425,000
  • Median property value for all young buyers: $ 335,000
  • Median installment for young buyers with an older co-signer: $ 70,000
  • Median installment for all young buyers: $ 40,000

3. California

Homes in Sacramento, California
Emmy Bersa / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1.358%
  • Median property value for young buyers with an older co-signer: $ 535,000
  • Median property value for all young buyers: $ 545,000
  • Median installment for young buyers with an older co-signer: $ 100,000
  • Median installment for all young buyers: $ 100,000

2. Colorado

Centennial, Colorado
Faina Gurevich / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1.361%
  • Median property value for young buyers with an older co-signer: $ 385,000
  • Median property value for all young buyers: $ 405,000
  • Median installment for young buyers with an older co-signer: $ 60,000
  • Median installment for all young buyers: $ 50,000

1. Hawaii

1960s Home Interior in Hawaii
jr.gardiner / Shutterstock.com
  • Percentage of young buyers with an older co-signer: 1,752%
  • Median property value for young buyers with an older co-signer: $ 545,000
  • Median property value for all young buyers: $ 555,000
  • Median installment for young buyers with an older co-signer: $ 100,000
  • Median installment for all young buyers: $ 80,000

Methodology

Man analyzing data on a laptop
fizkes / Shutterstock.com

To determine the states with the highest percentage of young homebuyers with an older co-signer, researchers at Porch analyzed the latest data from the Federal Financial Institutions Examination Council’s Mortgage Disclosure Act. Only conventional, non-commercial home purchase loans that arose in 2020 were considered in the analysis.

In addition, data on median home values ​​are from Zillow’s Zillow Home Value Index. The researchers ranked states according to the percentage of young homebuyers (34 years old or younger) with an older co-signer (55 years old or older).

Researchers also calculated the median property value for young home buyers with an older co-signer, median property value for all young home buyers, median installment for young home buyers with an older co-signer, and median installment for all young home buyers. In the event of a tie, the state with the higher median property value for young home buyers with an older co-signatory is ranked higher.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click on links in our stories.

COMMENTS

WORDPRESS: 0
    error: Content is protected !!