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Millennials Want To Buy Homes, Too

MILLENNIALS ARE STILL CHASING THE AMERICAN DREAM OF BUYING A HOME In the wake of the housing crisis, Millennials are having a tough time living the American Dream - but they aren't giving up on a white picket fence yet! Millennials associate OWNING A HOME WITH THE AMERICAN DREAM more than any other generation AGE GROUP ASSOCIATION WITH THE AMERICAN DREAM WHEN DO MILLENNIALS BELIEVE THEY'LL BUY A HOME? 1-2 years 3-5 5+ year Not year years Never sure 65.3% 58.4% 56.9% 63.9% 18-34 35-49 50-64 65+ 9.2% 23.7% 33.2%/ 24.4% 1.8% 7.6% MILLENNIAL DELAY IN HOMEBUYING HAS THE US HOMEOWNERSHIP RATE AT AN ALL-TIME LOW 70 HIGHS AND LOWS OF HOMEOWNERSHIP IN THE US 69.2% 69 68 67 66 65 64 63 62.9% 62.9% 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 US Census began tracking homeownership Epic housing boom reached an all-time high US ties lowest homeownership reading on record MILLENNIAL AROUND A THIRD OF AMERICANS UNDER THE AGE OF 35 OWN THEIR OWN HOME HOMEOWNERSHIP RATES 34.1% THAT'S DOWN ABOUT 50% FROM THE MID 2000s The average American homeownership rate is just under 63% There are close to BT,00,00 Potential MILLENIAL HOMEBUYERS 91% of them report they plan to own a home some day HOMEOWNERSHIP HURDLES: WHY ARE MILLENNIALS POSTPONING BUYING A HOME? American Savings Is Slimmer Than We Thought How much do Americans have in their savings accounts? 62% have less than $1,000 21% have nothing saved Lack of Affordable Housing for Sale The Great Recession left many homeowners “underwater on a mortgage" (e.g., owing more on a home than it's worth), so they stopped moving Ever Escalating Credit Standards Led to not enough supply to meet first-time homebuyer Stricter credit standards demand are blocking Millennials from home buying after the housing crisis About 1 in 3 Millennials don't meet the "industry standard" minimum credit requirement of 620 No More Starter Homes for First-Time Homebuyers 69% Would rather wait to save up and buy a longer-term home Drowning in Student Loan Debt |2016 college graduates had record level debt 21% Prefer to purchase a home now that will meet future needs $37,173 PER STUDENT le.g., family sized home) on average up $2,230 from 2015 Traditional drivers of homeownership are delayed Escalating Rent Is Creating a Down Payment Problem High rent can make saving the "recommended" 20% down payment close to impossible in many US cities Marriage and parenthood are happening later in life 29 Median age to marry is at an all-time high An issue near to the heart of Jimmy McMillan CC BY 3.0 David Shankbone MILLENNIALS BELIEVE THEY CANT AFFORD TO BUY A HOME BUT THEY'RE MISINFORMED! State, County, and City governments OFFER FINANCIAL ASSISTANCE Three Main Types of Down Payment Assistance 73% of Millennials ages 18-34 are unaware of SECOND MORTGAGE LOANS TAX CREDITS GRANTS low Down-payment programs ranging from 3% to 5% Funds that you do not have to pay back as long as you own and occupy your home for a certain period of time Offered by state/local governments, have low/zero interest rates, and payments that are deferred over a specified time (e.g., home equity loan) Mortgage credit certificates that reduce federal income taxes and make more money available upfront for down payment/ closing costs Take advantage of HOMEBUYER ASSISTANCE PROGRAMS U.S. Department of Housing and Urban Development State Housing Finance Agencies Federal Housing Administration (HUD) (HFA) (FHA) Provides grants to state/ local organizations for homebuyer assistance programs that HUD helps fund Widely known for first-time homebuyer lending programs and noted for low delinquency and default rates Popular first-time homebuyer program that allows lenders to offer better options as the FHA insures the loan Mission to provide affordable housing to all US states • Down payments as low as 3.5% • Low closing costs • Easy credit qualifying Programs are listed by state Energy Efficient Mortgage HUD 203 USDA Mortgage Program (EEM) HUD 203(k) (USDA RD) Allows a lender to extend a home loan amount Borrow funds to complete home renovations as part of your main mortgage Program that targets quality of life improvement in rural areas, offering low interest rates and no down payments for energy efficiency improvement costs Designed for fixer-upper homes Can add the EEM benefit to your regular mortgage Are you ready to say, Presented by: “I WANT SOMETHING THAT'S ALL MINE?" Sources: portal hud gov/hudportal/HUD?aro=/buyingyloans census gov/housing/hvs/files/currenthvspress.pdf -take advantage of these programs that can help you achieve the American Dream! gardner/20150629 down_payments.htmi pdfepage=14 DEVELOPED Br NOWSOURCING

Millennials Want To Buy Homes, Too

shared by NowSourcing on Nov 18
Despite dwindling savings and the challenges of the housing market, millennials still want to buy homes. Learn more about millennial home buyers from this infographic!


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