First-time homebuyers have so far made a huge contribution to Michigan’s housing market this year, but they’re not without insecurities.
A lack of savings for down payment was a top concern for over half (55%) of the respondents, according to a recent survey by the Michigan State Housing Development Authority (MSHDA). Results also found that:
- 32% are not confident that their mortgage would be approved
- 22% said it’s hard to find credible information and advice on housing and financing
- 21% feel they don’t know enough to make a good decision
- 18% are not sure be able to make the new payments
“Many of today’s first-time homebuyers remember the 2008 housing crisis and the impact it made on many family and friends and that is reflected in the uncertainty and apprehension we see in this study,” said Mary Townley, director of homeownership at MSHDA.
Results came from a study on 500 current Michigan residents with annual household incomes ranging from $50,000 to $125,000. Of those who responded, 45% were thinking about purchasing a home in the next 12 months, and 26% of those will be first-time homebuyers.
A broad majority of respondents – 83% of them – said purchasing a home will fulfill their desire of having their own place and 44% said they were tired of paying rent.