Online mortgage company Better Mortgage has announced that they are now offering government-backed Federal Housing Administration (FHA) home loans to consumers through their website.
FHA loans require lower minimum credit scores and down payments than conventional mortgages, making them appealing for first-time homebuyers and millennials saddled with student debt.
The company’s announcement follows a Realtor.com report that showed millennials surpassing Generation X as the group that was responsible for most new mortgages in the US. Millennials make up 42% of all mortgages originated in the country, but one in five Americans with student debt were denied conventional mortgages because of low credit scores and an inability to provide down payment.
Vishal Garg, founder and chief executive officer at Better Mortgage, said that the FHA loan program makes home ownership attainable for millions of Americans who would have otherwise been turned down for a mortgage.
“Owning a home, the most conventional way Americans build wealth, can become a distant dream for millions crushed by student debt,” said Garg. “Student loan payments make saving for a down payment more difficult and mortgage payments harder to handle once you’re a homeowner,”
“It felt unfair that anyone who graduated in the late 2000s and invested in their education should now be punished and prevented from buying a home and accessing the American dream. The launch of Better.com’s FHA loans is consistent with our ethos of expanding access and affordability to home ownership, and today we’re proud to move one big step forward in solving this issue.”