It’s no secret that our younger generations are our future, and our future economic stimulants. So it doesn’t hurt that, as this generation comes into its own, mortgage giants (such as Fannie Mae and Freddie Mac) are planning on accepting lower down payments — nearing three percent. Less rigid lending guidelines mean more accessible loans and low interest rates mean that now is the time for this blossoming generation to think about buying their first home.

There are also programs targeted toward these new buyers, tailored for those whom take advantage of a fixed-rate mortgage with a three percent down payment. To earn the lower down payment, applicants must prove they can pay back loans and secure mortgage insurance by attending pre-purchase counseling. This counseling educates attendees in aspects of homeownership often neglected in the home buying process: expecting expenses such as property taxes and homeowners insurance on top of the usual monthly mortgage payment; budgeting for maintenance and other costs; learning what to do if they fall behind on their payments. This training will help millennials feel more secure about buying a home.

What further needs to be addressed with this generation is the usefulness of owning a home. A population focused mostly on school loans, it needs to be made clear that buying a home is an investment that puts the buyer’s money to work for them, and therefore giving them more money to put back into their loans.

Now is the best time for millennials to jump into the home market. We just need to show them why.

Article Citation: Frommeyer, Donald J. “Hey, millennials time to buy your first home!” Yahoo! Homes. December 24, 2014. Retrieved February 1, 2015 from: https://homes.yahoo.com/news/hey-millennials-time-buy-first-153800407.html.
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