Still Think You Need 15-20% Down to Buy a Home? Think Again!

ERA Justin Realtor agent and management administrator Michelle Korosy points out directions for home ownership. “According to a new study from Urban Institute, there are over 19 million millennials in 31 cities who are not only ready and willing to become homeowners but are able to as well!  Now that the largest generation since baby boomers has aged into prime home buying age, there will no doubt be an uptick in the national homeownership rate. The study from Urban Institute revealed that nearly a quarter of this generation has the credit and income needed to purchase a home. Surprisingly, the largest share of mortgage-ready millennials lives in expensive coastal cities. These cities often attract highly skilled workers who demand higher salaries for their expertise.”

ERA Justin Realty Broker-Owner Jennifer Darby Metzger commented, “So, what’s holding these mortgage-ready millennials back from buying? Myths About Down Payment Requirements!  According to the Keeping Current Matters, Inc. news reporting service, Most of the millennials surveyed for the study believe that they need at least a 15% down payment in order to buy a home when, in reality, the median down payment in the US in 2017 was just 5%, and some programs for qualified buyers are available for even lower down payments! The study goes on to point out that despite limited awareness, many states have programs that provide grants and loans to make homeownership more attainable, with varying assistance in various states ranging up to $21,171.”

Michelle concluded,  “The bottom line with so many qualified young families now able to buy a home in today’s market, the demand for housing may continue for years to come. If you are one of the many millennials who have questions about their ability to buy in today’s market, let’s get together so we can assist you along your journey! You should conduct your own research and due diligence and obtain professional advice before making any investment decision. Housing is still affordable in the United States.”