According to Freddie Mac, 2017 will likely be the best year for housing in a decade. What is unusual are the findings from the fifth annual America at Home survey that indicates several perceived barriers to homeownership. A lack of down payment, credit concerns and student loan debt prevented many from achieving homeownership. The survey consisted in part of 500 millennials.
According to Freddie, additional findings from the survey include:
- Millennials think the minimum required down payment is 21%.
- 70% of respondents feel they don’t have enough money for a down payment.
- 74% of respondents and 84% of millennials see the home buying process as complicated.
- Approximately 73% of all consumers and 62% of millennials said they were not aware or are unsure about down payment assistance programs in their communities for middle–income homebuyers.
In the real world, you can put down as little as 3%. Debunking the myths might seem like the best place to start but it is hard to believe that with all the information available today that any significant number of Millennials actually believe they need 20% down to buy a home. A more reasonable belief on their part might be that 20% down makes homeownership more affordable. A lower mortgage amount with no mortgage insurance is a very practical personal financial decision.
What is really needed is the opportunity to walk potential borrowers through financing options and give them the opportunity to see different financing scenarios and payments, to compare the cost of buying today with little or no money down to the cost of waiting while they save that elusive and ever increasing 20% for a down payment. At Embrace, we can explore those opportunities one on one with any of your potential contacts or offer up first time homebuyer programs with our realtor partners. We have dedicated staff to assist in putting together first time homebuyer seminars from marketing materials and online registration to seminar materials.