Can Millennials Still Obtain Mortgages in a Hot Housing Market?
With rising housing prices and low inventory, there is a lot of competition for mortgages these days. For millennials, the struggle to secure housing is real, but not as difficult as one might think. Read on to sort out fact and fiction for millennials and the current housing market
Common Misconceptions About Millennials and Home Buying:
There is a lot of buzz about millennials and their ability to buy a home in such a red hot housing market. A few of these myths include:
- It’s impossible for a millennial to afford a home: Millennials, in fact, are one of the largest demographics of home buyers right now. In the last several years, millennials have held onto their jobs or found higher-paying ones. Many saved their money by living in less comfortable conditions, and now they are ready to buy their dream home. Many are also willing to relocate to less expensive locations where they can afford a “forever home” with room to grow a family.
- Most millennials can’t afford a down payment: Many people mistakenly believe that most mortgage lenders require a higher down payment on a home since the Great Recession. The fact is that many lenders are willing to work with buyers and even allow a smaller down payment to give younger buyers more options.
- Millennials prefer to rent rather than own: There is certainly a stereotype of millennials putting off home ownership to pursue their own dreams of travel, starting their own home-based business, or investing in other goals. Although this may be true for some millennials, over 50 percent of new home buyers in the current market are millennials.
- The majority of millennials prefer urban living: In one recent study, only a third of people under the age of 36 live in an urban center and over half of them live in the suburbs.
If you are a millennial, and you are ready to buy your first home (or second, or third…) contact Midland Mortgage for an easy, honest, and reliable mortgage that matches your budget and your lifestyle.