Every day, it seems, someone is pointing out a new way that millennials are tossing aside the time-tested roadmap to the American Dream including becoming homeowners.
They are ...
Reluctant to buy a car. Slow to get married. Cautious about kids.
But opposed to home ownership? That’s not a bet I’d make. Here’s why.
First of all, they call it a dream for good reason. There is nothing like the feeling of reaching for your keys, turning the lock, and walking through the front door of your first house. It’s all there: Your entertainment room. Your kitchen. Your bedroom.
The allure of making a home for family and friends was huge for your grandparents. Your parents, too. And it’s just as powerful for the 22- to 37-year-olds who are shaping today’s world.
A look back over previous generations shows us that most people become homeowners when they reach about 30 or so. And now, as almost 5 million American millennials reach this milestone, the housing market is preparing for a surge in activity.
Here are a couple more ideas to keep in mind:
- Home ownership among millennials has continued an upward trend in recent years. Right now, 48 percent of Americans between the ages of 30 and 34 are happy homeowners.
- What’s keeping the millennial market strong? Of today’s 46 million-plus millennials, 33 percent are considered "Mortgage Ready," meaning they check the important boxes needed for mortgage approval.
- A Fair Isaac Corporation -- FICO -- credit score higher than 620
- A debt to Income Ratio Less than 25 percent
- No bankruptcy or foreclosure for the last 7 years
- And no severe delinquencies in the last year
Rob Chrane, CEO of Down Payment Resource, a group that racks approximately 2,500 homeownership programs through its housing finance agency partners, said the numbers are strong:
“We now know there are millions of buyers with the income and credit necessary to qualify to buy a home. The biggest question is: Do they know it? … Unfortunately, many renters don’t investigate homeownership simply because they don’t believe it’s an option.”
At the Donna Kerr Group, we’re is committed to helping more millennials realize that they can afford, qualify and purchase a home. Our team has expert knowledge of low down payment loan programs that are attracting more millennials than ever to Silver Spring and surrounding D.C-area suburbs.
Did you know millennials, according to realtor.com, accounted for 42 percent of all new home loans just last month? That's more than any other age group!
If you're a millennial and think you may be "mortgage ready" but are confused about how to put your dreams into action, we can help you navigate your journey to homeownership. Contact our team to get started.