Millennials and Homeownership
Studies show that 73% of millennial are unaware of the various programs available to help first time homebuyers get into homes of their own.
They still dream home ownership but higher credit standards, student debt, increasing rents, etc., stand in the way of achieving their dreams.
Ways to get a mortgage
Although there is a shortage of inventory in some areas and rates have recently gone up there are still ways to qualify for a mortgage and buy a house but millennials are unaware of the types of assistance and the Homebuyer assistance programs that are available to help them.
Types of Down Payment Assistance
Grants: in most cases, you don’t have to pay these back as long as you own and live in the house for the stipulated number of years.
Second Mortgage loans: offered by state and local governments; zero to low down payments.
Tax credits: these credits reduce federal income taxes and make more funds available for down payments and closing costs.
Home buyer Assistance Programs
HUD (Housing and Urban Development) provides funding to state and local governments for first time homebuyer assistance
HFAs (Housing Financing Agencies) are state agencies whose mission it is to provide funding for affordable housing. They are noted for low delinquency and low default rates
FHA (Federal Housing Administration) has a program which helps first time homebuyers get mortgages. The downpayment is 3.5% with low closing costs.
EEM is an extension of the mortgage to include energy efficient improvements
HUD 203k is another FHA program that is an extension of the mortgage that provides funds to make improvements… This is intended for homes that are fixer uppers.
USDA RD focuses on improving the quality of life in rural areas. Features are a low interest rates and no down payment.
There are paths to homeownership for first time homebuyers. The first step toward achieving the dream is to learn more about these programs and see how they can meet your needs.
Read the Original Article Here: Millennials Still Chasing American Dream despite Hurdles
Are you looking for a home in the Brentwood, Franklin, Metro Nashville area? Give me a call – 615 482 2257. I’d love to help you find a home and help you with access to homeownership.