Many millennials are reaching the age where they consider purchasing their first home. However, most are strapped for cash when it comes to acquiring enough savings for a mortgage down payment. The obstacles faced are due to the current economic climate coupled with debt acquired through student loans and higher cost of living. Hurdles like these are causing millennials to get creative with the way they come up with a down payment.
While some millennial homebuyers are picking up a second job or side hustle, others have received a cash gift from a family member in order to supplement their mortgage down payment. Some are even pulling money out of their retirement funds early, although this is something we don’t recommend. However, the largest rising trend is to kick traditional living to the curb by splitting the purchase of a new home with friends or roommates.
Calculate the cost
Keep in mind, that the main reason millennial homebuyers are struggling to produce a down payment is that they cannot afford to purchase a home in the area where they want to live. Some millennials said they would sacrifice many luxuries in order to afford a home in their preferred location. Most millennials want to purchase a home just as much as any other generation before them. However, they are unwilling to sacrifice their dream location as many different lifestyles and living arrangements come into play that was not attainable twenty years ago.
At the end of the day, everyone has to figure out the sacrifices they are willing to make in order to save for a down payment. Start curating a lifestyle that allows you to do both.
Homeownership is just a click away.
Eagle Home Mortgage offers many loan options for first-time homebuyers and several programs require as little as a 3% down. Each loan is specifically designed for first-time homebuyers in order to make saving for a down payment easy and homeownership possible.