The 2020 Millennial Home Buyer Report shows how this generation is not really any different from previous ones when it comes to homeownership goals:
“The majority of millennials not only want to own a home, but 84% of millennials in 2019 considered it a major part of the American Dream.”
Unfortunately, the myths surrounding the barriers to homeownership – especially those related to down payments and FICO® scores – might be keeping many buyers out of the arena. The piece also reveals:
“Millennials have to navigate a lot of obstacles to be able to own a home. According to our 2020 survey, saving for a down payment is the biggest barrier for 50% of millennials.”
Millennial or not, unpacking two of the biggest myths that may be standing in the way of homeownership among all generations is a great place to start the debunking process.
Many buyers often overestimate what they need to qualify for a home loan. According to the same article:
“A down payment of 20% for a home of that price [$210,000] would be about $42,000; only about 30% of the millennials in our survey have enough in savings to cover that, not to mention the additional closing costs.”
While many potential buyers still think they need to put at least 20% down for the home of their dreams, they often don’t realize how many assistance programs are available with as little as 3% down. With a bit of research, many renters may be able to enter the housing market sooner than they ever imagined.
In addition to down payments, buyers are also often confused about the FICO® score it takes to qualify for a mortgage, believing they need a credit score of 780 or higher.
Ellie Mae’s latest Origination Insight Report, which focuses on recently closed (approved) loans, shows the truth is, over 50% of approved loans were granted with a FICO® score below 750 (see graph below):Even today, many of the myths of the homebuying process are unfortunately keeping plenty of motivated buyers on the sidelines. In reality, it really doesn’t have to be that way.
If you’re thinking of buying a home, you may have more options than you think. A trusted real estate professional can answer your questions and help you determine your next steps.HOME All Listings Featured Listings Sold Listings Sell My Home Home Evaluation AffordabilityCalculator MortgageCalculator Home Mortgage Cave Creek Carefree Scottsdale Paradise Valley Phoenix Fountain Hills Peoria Anthem Tempe Glendale Chandler Gilbert Mesa Prescott Flagstaff Sedona Tucson Show Low Pinetop-Lakeside DC Ranch McDowell Mountain Ranch Old Town Scottsdale Troon North Pinnacle Peak Carefree Grand View Estates Carefree Foothills Dove Valley Estates Leigh Estates Arroyo Trails I at Dove Valley Ranch Montacino Longview Estates Lone Mountain Desert Forest Park Dove Valley Ranch Highlands at Canyon Ridge Carefree Sentinel Rock Canyon Ridge Estates Palos Verdes Black Mountain Foothills Cave Creek South Black Mountain Shadows Provence The Villas at Black Mountain Tranquil Place Whispering Hills The Enclave at Dove Valley Ranch Camino de la Cruz Red Dog Ranch Emerald Greens at Dove Valley Ranch Mystic Ridge at Dove Valley Ranch The Crossings at Canyon Ridge Azure Hills Estates Panoramic Estates Continental Mountain Estates Desert Enclave Ridgeview Estates Crossings at Carefree Willow Springs Estates Nighthawk on Black Mountain Boulder Vista Estates Terraza at Dove Valley Ranch Blue Ridge Hills Stagecoach Pass Estates Desert Vista Trails Surrey Hills Arroyo Trails II at Dove Valley Ranch Rockaway Hills Colina Del Norte Rancho Manana Hawksnest Vista Montana at Dove Valley Ranch Cave Creek Mesquite Ranch Miramonte Carroll Heights Los Reales Ocotillo at Dove Valley Ranch Canyon Creek Estates Loringwood Estates Ridgecrest Highlands Las Ventanas Mystic Ridge II at Dove Valley Ranch Ocotillo Ridge Estates Estado de Cholla Vista Norte Lost Acres Hidden Valley North Entrada Scottsdale Heights Villagio at Dove Valley Ranch Arissona at Rockaway Valley Village at Miravista Tatum Ranch Clarendon Estates Hidden Valley Desert View Desert Fairways Azure Creek Ashler Hills Estates Tatum Village Cimarron at Tatum Ranch Casas del Cielo Desert Manor Estates The Enclave Desert Wind Toscana Falcon Ridge Quail Run Desert Ridge Terra Vista Ventana Chaparral Dove Valley Ranch Tapestry Lone Mountain Desert Willow Estates Amberwood Estates La Tierra Prometida Grayhawk Tatum Ranch Gray Wolf Central Scottsdale Desert Foothills North Kierland The Summit New on Market Private Pool AS SEEN ON HGTV YOUR TEAM REALTOR.COM YOU TUBE FACEBOOK ZILLOW SELLER FINANCED HOMES RENT TO OWN HOMES LEASE TO OWN HOMES SELL HOUSE FAST REVIEWS BLOG CONTACT