Buy a home in your 20s with these flexible mortgages
Are young adults interested in to buy a house?
According to the data, the answer is an unmistakable “yes”.
Yet the question is still common among older generations about the promising 18- to 34-year-old group, which previous generations commonly referred to as Millennials or Millennials.
One in four adults in their 20s and under 30s now own a house, according to a Consumer Reports survey.
Yet 71% of young beginners dream of owning home because they yearn for more privacy, the ability to personalize a space, and the ability to create equity and wealth, according to the same. investigation.
According to a new Better Homes and Gardens survey, 60% prioritize owning a home that is a ‘reflection of me’.
The good news for young buyers is that the road to homeownership can be easier than many think. The journey begins with discovering beneficial financing options that offer the right combination of flexibility and affordability.
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Buyers in their 20s don’t compromise on amenities, location
Buyers in their 20s and 30s have different needs, tastes and priorities than other generations. But research shows that while young adults may be slower to buy a home, their desire to own a home remains as strong as older groups.
In fact, a new report from Bank of America finds debt securities don’t dampen enthusiasm for buying a home. The study shows that people in their twenties think that many common reasons for taking on debt are worth it.
Homeownership is a worthy proposition for borrowing, according to 89 percent of survey respondents.
“Millennials want to buy a house, they’re just waiting for the right one and taking their time to find it. They are also optimistic about their financial situation, ”says Kathy Cummings, first-time homebuying expert at Bank of America. “Rising rents across the country are starting to make young professionals think more about buying homes now. “
Cummings says young buyers are looking for affordable city living in homes that will suit their lifestyle and in cities that offer employment, affordable housing and social opportunities.
Additionally, “many Millennials want to be near schools, parks, stores, and restaurants, and they look for an open floor plan and up-to-date facilities,” says Roberto Cabrera, senior vice president of Regions Bank in Birmingham, Alabama.
“Many also wait longer to buy a house,” says Cabrera, “some skipping the starting house and maybe renting it for a while, then moving into a larger suburban house, often when they are starting a family. . “
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Mortgage programs for buying a home in your twenties
Members of the emerging generation often delay buying because they think they don’t qualify for a mortgage.
They may feel facing financial hardship due to student loan and auto loan debt, rent increases, and a competitive employment climate.
“Many think they can’t qualify for a mortgage when in fact they’ve never tried,” says Nick Stamos, co-founder / CEO of San Francisco-based Sindeo.
Stamos continues, “In fact, there are many options for first-time home buyers when it comes to mortgage programs and down payment assistance. “
Several flexible down payment and loan options exist today, many of which do not require high credit scores, including the FHA loan which only requires 3.5% down.
Fannie Mae Home LoanMT and Freddie Mac’s Home Possible Advantage® both offer 97% loan-to-value options; and the down payment assistance programs provided by many cities, counties and states.
the USDA Mortgage comes with income limits and geographic restrictions, both of which are pretty lenient. Buyers who meet the eligibility criteria can avail of a no down payment loan at very low rates.
“An experienced mortgage advisor can help Millennials navigate the programs available to them and determine what loans and rates they are eligible for,” adds Stamos.
Proven shopping methods for all age groups
For the best mortgage rates and early homeownership loans, follow these proven suggestions:
- Check your credit score and take action to improve it
- Set aside money for down payment and closing costs
- Create a budget and forecast the potential costs of the house
- Think about neighborhoods in the making
Also, don’t neglect the fixatives. “Many millennials prefer ‘ready to move in’ homes, but sometimes homes that need a little love will pay off in the long run for a great return on their investment,” says Liz Murphy, real estate agent at Berkshire Hathaway HomeServices in Jenkintown, Pennsylvania. .
In today’s mortgage market, there are few barriers preventing a motivated young buyer from accessing affordable homeownership.
What are the mortgage rates today?
Whichever generation you consider yourself associated with, you may be eligible to capitalize on low mortgage rates that will allow you to access your dream home faster. The first step is to get an accurate and up-to-date quote from an experienced mortgage lender.
Check Mortgage Rates Live Today Now. Your Social Security number is not required to get started, and all quotes come with access to your live mortgage credit scores.
Check your new rate (June 17, 2021)