Millennials are breaking into the housing market with great force with hopes of attaining one of the biggest stepping-stones to the American Dream- homeownership. Whether or not the American Dream still exists is questionable, but one thing that is certain is that as the largest active generation in the housing market at 34%, millennials are making lemonade out of lemons and turning the boomerang generation into homeowners.
Buying a house is the largest financial investment that most people make in their lifetime. Its benefits, especially if the path to homeownership is achieved by establishing better money habits before buying, result in financial rewards throughout the year.
Before buying a home, first-time buyers should save for a down payment, raise one’s credit score, and figure out how much house they can actually afford. To take the savings benefits one step further, first-time millennial buyers are urged to do a little research of their own to see what tax breaks are available that makes the home buying process a little more affordable.
Keeping affordability in mind, the housing and financial industries have teamed up to offer resources that make the transition of renting to owning easier for first-time and millennial buyers. By anticipating some of the financial setbacks plaguing millennials, such as staggering student loan debt, the Federal Housing Administration (FHA) have changed the amount allowed to be financed and lowered some of the qualifications to attract young buyers. I bought my house five days after my 24th birthday with an FHA loan. This was the best move for me at that time because I was looking for a nice apartment when I came across a property that was priced so well I couldn’t miss out on the opportunity. I hadn’t saved specifically for a home or better yet a traditional 20% down payment, but I did have enough to put down to secure an FHA loan and become a homeowner by age 24.
Homeownership is affordable, attainable, and provides financial advantages for those who choose this path over renting. While millennials are changing the narrative of the American Dream, one thing still rings true. Homeownership is still a good way to achieve wealth in the United States and thanks to the financial advantages of homeownership, the dream is so much sweeter.
Are you thinking about buying your first home and have questions about the homebuying process? Leave your comment or question below and/or tweet me @shemakescents to have your question answered.