Why aren’t millennials buying homes? It’s a question without a simple answer. For years, owning a house was the holy grail – it was what everyone aspired to. You got a job, got married, bought a house, and built a family. Homeownership at the prime age of 25-34 has dropped generationally – Baby Boomers and Generation X had ownership rates at about 45% but Millennials are holding at 37% homeownership.
Owning a home is the path to financial stability. You have an asset that traditionally rises in value. It gives you stability and the ability to plan your bills around your housing costs. It’s the American dream, and a whole generation is missing out.
Why? There are a lot of reasons.
Many Millennials are having trouble saving up for the down payment. They haven’t been properly informed that you don’t have to have 20% to put down on a house to buy nowadays. With FHA and VA loans, there are lower down payment options available. While this is a huge concern among Millennials, it’s not as bad as they think, and there are options.
Many young people are also saddled with heavy student loans debt. This is a big deal, as it totally skews your debt-to-income ratio. It can make buying a home very difficult, and student loan debts have exploded in the last few years. This is a legitimate problem.
A large percentage of Millennials also prefer to rent for various reasons. They feel that it is more flexible, and they can move more quickly and it’s cheaper to rent. All of these are fleeting concerns though. Renting is throwing money away. You’re not building anything. While renting is the only option for many buying a home isn’t out of the realm of possibility for anyone if they want it and will work for it.
The gig economy also keeps Millennials out of homes. Many of them have several jobs as contractors, meaning that they have a difficult time proving income as they are technically self-employed. The Bank Statement Mortgage from The Home Loan Expert team helps that, using your bank statement as your income to prove what you make and that you can afford a home.
So, if you are a Millennial, you don’t want to miss out on this hot housing market. Home values are rising quickly, and not owning a home is costing you money in home equity every day.
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?