It wasn't long ago we were reading statistics that showed most young people preferred to rent and NOT own. They had watched too many of their friends and family go through the foreclosure nightmare caused typically from a down market. Even though we've survived that bubble, NAR's 2017 Home Buyer and Seller Generational Trends Report indicated that among all sellers last year still 12% wanted to move earlier than they did, but couldn't because their home value still was less than they owned. Current upward housing market trends would suggest more motivated sellers may be encouraged to sell giving some relief to the low inventory some parts of the country are experiencing.
It would seem the national housing market has redeemed itself and once again the youngin’s, ages 36 and under referred to as Millennials, are representing 66% of all first time homebuyers. Sounds great, right? But what could that number have been if they were actually prepared to buy - you know, have saved up a down payment for one.
Headlines like this one should grab your attention.
In the "good 'ole days" 20% or more down was pretty much a prerequisite of buying a home. As the headlines suggest, many of today’s first time homebuyers are in a position of looking for "down payment assistance" programs. These programs differ by state or county or even cities sometimes. Colorado home lenders, if approved to participate, can offer down payment assistance programs in the form of either grants (no repayment required if qualified) or seconds, often silent which means repayment isn’t due until the homebuyer eventually sells their home. *
So, if you are either working with a Millennial, or are a Millennial and know it’s time to invest in your own home, but fall in the 80% category of not having saved a down payment, do your research. Ask your Real Estate agent to refer a home lender that is approved to offer down payment assistance programs. Don’t let a down payment keep you from investing in your future.
*Requirements and restrictions apply. Contact your local COLORADO HOME LENDER for details.