Many millennials and Gen Z individuals feel discouraged from pursuing homeownership due to prevailing myths and economic challenges. However, a recent poll by homebuilder KB Home and Harris Poll revealed that 40% of younger generations contemplate buying a home regularly. Despite this, 56% believe they are in a worse position to buy a home than previous generations. Let’s debunk some common myths and explore the facts and statistics to empower millennials and Gen Z to achieve their homeownership dreams:
Myth 1: Interest rates are higher than ever
- Reality: Historically, interest rates have been much higher, reaching a peak of 18.63% in 1981.
- Fact: Current rates, while higher than their all-time low, are still relatively low and present opportunities for homeownership.
Myth 2: You need to put 20% down to purchase a home
- Reality: Many resources and programs, including FHA, VA, and USDA loans, allow for lower down payments, some as low as 3%.
- Fact: Buyers can explore various federally supported programs that enable them to put down as little as 3%, making homeownership more accessible.
Myth 3: You need to have stellar credit to qualify for a mortgage
- Reality: FHA, VA, and USDA loans offer options for individuals with credit scores in the “poor” to “fair” range.
- Fact: Prospective buyers can explore incentives and assistance from lenders to find the most suitable mortgage option for their financial capacity and long-term plans.
Source: Realtor.com
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
