New Year, New Home?
It turns out a lot of millennials want to buy a home someday — a whooping 89 percent according to a new Apartment List survey. But, just 5 percent expect to buy in 2019 and 34 percent say they will wait at least five years. Why the lag?
While the dream of homeownership is strong, 72 percent cite affordability as the critical issue.
Down payment funds are primary challenge
Sixty-two percent of millennials specifically mention the lack of funds for a down payment. Only 11 percent have saved $10,000 or more for a home and 48 percent have zero down payment savings.
What the study overlooks
The survey also found that two-thirds of Millennial renters would require at least two decades to save enough for a 20 percent down payment on a median-priced condo in their market.
What this study overlooks is that a 20 percent down payment isn’t required and isn’t even typical for a first-time homebuyer. The average down payment for a first-time buyer is about 7 percent today, according to the National Association of REALTORS. So, don’t despair — you have options.
Today, there are multiple loan programs are available with as little as 3 or 3.5 percent required as a down payment. keep reading