Student loan debt is one of the largest circumstances that prevent millennials’ from being able to purchase a home. According to the National Association of Realtors ® (NAR), 80% of millennials are not homeowners and 83% of millennials say that student loan debt is impacting their ability to purchase a home.
While student loan debt is the biggest factor impacting millennials ability to buy, there are alternatives and options many may not know about. Some of these options include first-time homebuyer down payment assistance or refinancing student loan interest rates.
For homebuyers who aren’t able to save large enough down payments, there are several options that offer grants or down payment assistance. The U.S. Department of Agriculture (USDA) has a low and no-down payment option through the Single Family Housing Guaranteed Loan Program. This program allows lenders to offer low-moderate income households the ability to roll closings costs and other expenses into their loan when purchasing homes in more rural areas.
Another resource for consumers is the National Homebuyers Fund (NHF). The NHF provides a down payment assistance program that extends grants for up to 5% of the loan amount towards closing costs and down payments.
This is just a sampling of the programs available right now for down payment assistance. In hopes of tackling the student loan debt challenge that millennials are facing, many companies are introducing homebuyer assistance programs.
Reach out to one of our Premier agents for recommendations for a qualified lender that can help determine which program is best for you. We would love to help you achieve your homeownership dream!