For many millennials, buying a home seems like a far-off purchase, something that they may do in the future but can’t possibly afford now. That’s just not true, and they need to learn about how they can buy a house and become a homeowner, even if they don’t have the 20” to put down that their parents had to. How millennials can buy a house is easy. There are lots of programs designed to help.
FHA Loans are government-backed mortgages from the Federal Housing Administration. They only require a 3.5% down payment to buy a home and are a great way to break into the housing market for people struggling to put together a 20% down payment. As home prices rise, this is even more important. Saving up 3.5% is a heck of a lot faster than 20%, especially as rents grow higher and higher. While FHA Loans require PMI, or Private Mortgage Insurance, you can refinance the mortgage to get rid of this requirement once you are past the 20% equity threshold.
For millennials that have military service, the VA Loan is the best option. You can buy a house with no money down! Finance the whole thing! The rates are also great. For a lot of mortgage companies, the VA Loan can be tough to use, but since The Home Loan Expert is VA delegated, we can underwrite our own VA Loans. Our Hero Loan program closes VA loans in as little as 14 days and we even pay for the appraisal on the loan and make a donation to Fisher House on every Hero Loan. The VA Loan is the best perk of military service and we make it easier to get.
Saving up for a down payment can be made easier with some simple techniques as well.
Set a target. Know how much you want to save and what house you’re saving it for.
Make a set deposit in a savings account. Figure out how much you can afford to set aside each month and do it. You can watch that money grow and don’t have to worry about saving in your checking account.
Go through your bills. Look through every bill to see where you can save money and put that towards your house. Do you not watch HBO? Cancel it. Are you paying for an old debt? Pay it all off and put the money towards your house.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, Nashville at (615) 810-8555 or Birmingham, AL at (205)721-7656. You can always apply online at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?