36% of Millennial Homeowners Put Down 5% or Less

36% of Millennial Homeowners Put Down 5% or Less

Potential homeowners in the United States are wearing rose-colored glasses when it comes to owning a home. Wells Fargo found that 72% of Americans feel like now is a good time to buy a home, while 65% call it "a dream come true" and "an accomplishment to be proud of." The white-picket fence fantasy is still very much alive and more attainable than ever. 

Millennials Are Using Support Wisely

Millennials are holding the reigns of the housing market, according to a recent poll conducted by Digital Risk. The age group, defined by those aged 18-34, are taking advantage of assistance programs and family support to invest in first homes, demonstrating a return to pre-recession financial values and goals.

Among millennial homeowners, nearly two-thirds put down 20% or less, while 36% put down 5% or less. As the chart below portrays, more and more young families are making the choice to end the rent-trap and pursue homeownership as a way of building wealth. 

36% of Millennial Homeowners Put Down 5% or Less

There are plenty of programs available to first-time homebuyers in this age bracket, including Fannie Mae's latest major program. Still-low mortgage rates should push hesitant young buyers to the market. 

It's Not Just About Millennials, Though! 

Even though Wells Fargo also found that many still believe the 20% myth, opportunities for lower down payments are available for both new and seasoned homebuyers who fall outside of the millennial demographic. These potential homebuyers can still take advantage of programs specifically tailored to their needs and save on down payments. 

The Federal Reserve Bank of New York found that once a down payment decreased from 20% to 5%, willingness to buy increased by 40%. This means that saving up is still a perceived obstacle for potential homebuyers across the board. But, with a little bit of research and know-how, it's actually quite easy to come up with a down payment. 

36% of Millennial Homeowners Put Down 5% or Less

Ready to Buy a Home?

This is where the Real Group Team would love to step in! We offer 30 years of combined experience and extensive listings all over Chicago. Let us help you use these programs to get settled into a new home! 

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