We’re covering a very important topic today: how to get your millennial out of your basement and into their first home.
The key is knowing how to overcome potential roadblocks your millennial might see in purchasing a home. The biggest roadblocks they see are the down payment and the closing cost fees. In reality, these things are more like hurdles than roadblocks.
Down payments, for example, are not as terrifying as one might think. Millennials think they will need to put anywhere from 5% to 20% down, and that’s simply not true. There are loans available to help first-time buyers. For example, an FHA loan only requires 3.5% down, some conventional loans only require 3% down, and there’s a USDA loan that’s available to many that requires 0% down. Also, if you have access to the VA loan, that is 0% down as well.
There are lots of programs that help first-time buyers.
There are also many down payment assistance programs out there that millennials can take advantage of.
Closing costs are not as scary as one might imagine, either. There are ways to overcome that hurdle as well. Your millennial could ask the seller for closing cost assistance or get a gift from a relative. They can also talk to their lender about options to soften the blow of closing costs.
When it comes to millennials, it shouldn’t be a matter of if they can buy, but rather when they can buy. We find that most can buy right now.
If you have any other questions, please feel free to reach out by giving us a call or sending us an email. We look forward to hearing from you!