Millennials Believe Buying A Home Is Out Of Their Reach But It Turns Out They Might Be Wrong

Dated: 02/06/2018

Views: 39

Millennials, which is the generation comprised of people born from 1980 to 1998, are buying homes at a much lower rate than previous generations in favor of renting or moving back in with their parents after college. And a large reason they're not buying?Because they believe they can't afford it. According to data from Apartment List, 72% of millennials say they can't afford to buy a home.One of the major roadblocks millennials believe stands in their way to homeownership is the down payment. But many millennials are operating with incomplete or incorrect information about how to purchase a home. According to a Fannie Mae survey, 73% of millennials surveyed were unaware of lower down payment options (like the ability to pay 3% to 5% of the home's purchase price instead of the traditional 20%).These lower down payment options are increasingly common in today's market. According to a recent NerdWallet report, 30% of all homebuyers put down 3% or less when purchasing a home.

The Takeaway

If you're a millennial who's holding off on buying a home because you can't save for a 20% down payment, look into lower down payment options. Depending on your financial situation, owning a home may be more economical than renting... and if you go with a lower down payment loan, you won't have to come up with a substantial down payment to make it happen.

Want to Advertise on this Site?

Latest Blog Posts

Sep 21 2018 34703 1

<div><img src="/wp-content/uploads/2016/12/living-in-home-during-sale-cover.jpg" alt="living-in-home-during-sale-cover" width="700"/></div><h6>Via <a target="_blank" href=

Read More

Buying A Home Take Stock Of These Things Buying A Home Take Stock Of These Things

What are some of the most important factors that buyers take into consideration when looking for a new home? There are the obvious things like price, square footage, location and lot size. Those

Read More

Millennial Home Buyers What You Need To Know

Millennial Home Buyers: What You Need To Know In the past, you’ve likely read about how the Millennial generation is opting to rent rather than buy property. While this still holds true for many

Read More

New Home Construction Boom Expected

The housing market has been trending in a positive direction and economic indicators point to new home construction going vertical. Following the housing bubble and sluggish post-recession,

Read More