Female homebuyers who purchase homes on their own have emerged as a borrower segment to target, with their growth trajectory as a share of the market rising faster than that of their male counterparts, according to mortgage software firm Maxwell.
Even with the difficult real estate landscape of the past couple of years, female homebuyers who apply for mortgages on their own have grown to comprise 18% of market share, per Maxwell’s numbers.
“The data on single women homebuyers is empowering,” says Melissa Langdale, president and chief operating officer of Maxwell investor The Mortgage Collaborative. “It clearly shows that women value homeownership and aren’t waiting on a life event like marriage or the perfect economic conditions to purchase a home. They’re being practical and are willing to make compromises to seek out affordable solutions for their single-income budgets.”
Maxwell’s recently released Single Women Home Buyer Report, based on a survey of 1,000 respondents, dug into the demographics of the emergent cohort, revealing that 51% buy single-family homes and 40% buy because of high rent prices. Twenty percent buy properties to be deployed as long-term rentals. Thirty-five percent are between 25-34 years of age, with another 24% between 35-44. Over half (55%) of female borrowers who apply singly are 34 or younger, compared to just 40% of male borrowers.
Notably, women who buy homes on their own aren’t necessarily single; one-third have a partner or are married but buy alone, either because they’re the breadwinner or have strong credit and savings. Women who buy alone tend to leverage low downpayment options more than men: 20% put 3.5% of less down (compared to 14% of men) and 60% put less than 10% down. About 30% opt for a conventional 30-year fixed-rate mortgage, with 27% going for a 15-year fixed-rate loan, 13% opting for adjustable-rate mortgages, and 8% choosing FHA loans. And 64% move to a more affordable area to buy, compared to just 41% of men.
“Today, we’re seeing women adopt a ‘whatever it takes’ attitude towards homeownership,” said Amy Jo Plummer, Maxwell’s vice president of customer success. “Because many recognize their earnings don’t stack up to their male counterparts, women buying on their own are finding alternative paths to secure financing, whether that’s lower money down options, first-time homebuyer programs or other creative methods.”
Maxwell’s study also found that a third of single-buying women aren’t confident going into the mortgage process, and the cohort rates education on the mortgage process as the second most important factor when choosing a lender, behind only competitive rates and loan options.
More than a quarter say that they don’t trust their loan officer — about 10 percentage points more than single male applicants. Asked how a loan officer can earn their trust, 57% of women who apply for loans as single applicants cited the proactive communication of next steps. Fifty-three percent said presenting the best loan options for their unique situation, and 51% said facilitating the lending process quickly and smoothly.
