Millennials have made up 36 percent of home buyers in recent reporting. Yet 70 percent of millennial home buyers stated that they believed they couldn’t get a home loan.
They believed that due to their current financial situation that there was no way a lender would provide them with a home loan. Being a first time homebuyer can be very stressful in any circumstance.
Demystifying the Millennial Home Buying Myth
We are here to tell you that you can both qualify and afford to buy a Home.
We are going to go over the 4 myths that millennials have over why they can’t buy a home and show how the USDA Home Loan is the solution to their home buying needs.
Insufficient Credit Score and Millennial Home Buying
Many millennials believed that their credit score was too low to qualify for a mortgage.
With the USDA Loan Program you only need a credit score of 620 and even then exceptions can be made if your scores are a bit lower.
As long as you have made your payments on time and haven’t maxed out any of your credit cards, then there shouldn’t be any problems qualifying for this loan.
Too Much Existing Debt with Millennial Home Buying?
It’s no secret to anyone that student loan debts have only been increasing every year.
America owes over $1.48 trillion dollars in student loan debts, with the average per-borrower being almost $40,000.
A majority of these numbers are coming from the millennial demographic so it’s understandable why they would believe that they can’t afford to buy a home.
Only 1% of the outstanding debt will be calculated into your DTI (Debt-to-Income) ratio.
The DTI is one of the factors that is used to determine if you are able to qualify for a mortgage.
With these factors, you can see that getting a mortgage to buy a house becomes that much more manageable while taking into account the requirements and guidelines, such as the Well Water Requirements.
Affording the Down Payment with Millennial Home Buying!
Many millennials stated that the hardest part of the entire home buying process was saving up for a downpayment.
It is reported that on average most people end up saving for 3 years to afford the downpayment.
With the USDA Home Loan, you won’t need a downpayment. It is the only non-military loan that offers this feature.
The years spent saving up for a downpayment and paying rent can now come to an end.
With No Down Payment, you can purchase a home sooner and start building equity instead of paying a landlord.
Insufficient Income for Monthly Payments and Millennial Home Buying
The last reason millennials feel they can’t afford to purchase a home is that their income isn’t enough to pay for the monthly payments.
The average cost of rent has been climbing higher and higher every year to the point that it is about to eclipse the cost of a mortgage payment.
But the added bonus of making those mortgage payments is that you will be building up equity instead of paying a landlord.
Instead of thinking about as not having enough money, think of it as spending your money wisely. Investing that money into your future instead of throwing away to a landlord.
