2020-Millenniale Guide Home

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Myth 2:You Need a 20% Down Payment to Buy a HomeGone are the days of 20% down or no loan, but recent surveys reveal that many Americansare not aware that programs exist to put down less.Fannie Mae’s article, “What Consumers (Don’t) Know About Mortgage Qualification Criteria,”revealed that “only 5 to 16 percent of respondents know the correct ranges for key mortgagequalification criteria.”The survey results revealed that consumers often overestimate the down payment fundsneeded to qualify for a home loan; 76% of respondents either don’t know (40%) or aremisinformed (36%) about theminimum down paymentrequired.Many believe that theyneed at least 20% downto buy their dreamhome, but manyprograms actually letbuyers put down aslittle as 3%.On the right are theresults of a Digital Risksurvey of Millennials whorecently purchasedhomes.
Since Millennials make up the largest share of first-time buyers, it should come as no surprisethat 97% of this generation financed their home purchase, compared to 86% of all buyers.What may come as a surprise to many who have not yet purchased, however, is that 16% of thosewho financed their home put 0% down!61% of Millennials who purchased a home in 2017 put down 10% or less!According to data from the last 12 months of Ellie Mae’s Millennial Tracker, the averagedown payment for a Millennial was 10%.Your dream home could be within your reach much sooner than you ever thought if you only needto save up 3-10% instead of the 20% that you may have thought you needed!Depending on where you live, median income, median rents and home prices all vary. So, we setout to find out how long would it take you to save for a down payment in each state?By determining thepercentage of income spentrenting a 2-bedroomapartment in each state,and the amount needed fora 10% down payment, wewere able to establish howlong (in years) it would takefor an average resident tosave enough money to buy ahome of their own.On the right is a map createdusing the data for each state.What if you only needed tosave 3%?10% DownWhat if you were able to takeadvantage of one of theFreddie Mac or Fannie Mae 3%down programs? Suddenly,saving for a down payment nolonger takes 5 or 10 years, butbecomes attainable in undertwo years in many states.Shown on the map to the right.Whether you have just startedto save for a down payment, orhave been saving for years,your dream home may becloser than you think!3% Down
Page 1 and 2: A Millennial’s Guideto Homeowners
Page 3 and 4: You’re Not Alone If You Haven’t
Page 5 and 6: Over the last 60 years, the mediana
Page 7 and 8: Do Millennials Want to be Parents?
Page 9 and 10: Myth 1:Student Loans are Preventing
Page 11: “With student debt on the rise, t
Page 15 and 16: The Financial Benefits of Homeowner
Page 17 and 18: Your Home Is an Asset You Can Borro
Page 19 and 20: Tips for Preparing for Homeownershi
Page 21 and 22: What to Look for in Your Real Estat
Page 23: CONTACT ME TO TALK MOREI’m sure y

2020-Millenniale Guide Home

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