Feb 22 2018 5156 1

Dated: 02/22/2018

Views: 26

Image titleMillennials, 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.

Blog author image

Stephanie Gonzalez

About Halo We understand that for many people, buying or selling a home is probably the largest investment decision that they will make in their lifetime. Halo Group Realty LLC thus became active i....

Want to Advertise on this Site?

Latest Blog Posts

Feb 22 2018 5156 1

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

Read More

Homes Selling At Or Above Asking Price Nearly Triples In 2017

Home price indexes took a major hit after the financial crisis a decade ago, and it took a long time for those prices to recover. But according to a recent report from CoreLogic, it looks like the

Read More

4 Steps To Save For A Mortgage Down Payment

Buying a home is one of the biggest investments you'll ever make. And while a mortgage is obviously a large financial commitment, before you even get to your mortgage, you'll be required to come

Read More

184 Things REALTORs Do To Earn Their Commission

Listed here are 184 typical actions, research steps, procedures, processes and review stages in a successful residential real estate transaction that are normally provided by full service real

Read More