A recent national survey found that 48% of renters, especially Gen Xers and Millennials, worry they won’t be able to afford a home during their lifetimes.
Viewed through a short-term lens, it’s understandable. With increasing pressure from student loans, the cost of living and childcare, purchasing a home can feel like just another financial albatross.
But perception doesn’t always match reality. The truth is that homeownership builds equity and is the primary driver for building wealth.
Each year of successful homeownership adds nearly $10,000 in household wealth. Since the pandemic started, the average homeowner has added an average of $89,000 in home equity to their portfolio.
Homeownership creates stability for families and stronger connections within communities. Rent is just putting money in someone else’s pocket.
Many renters may not understand mortgages fully. They may even believe that their current financial situation restricts them from getting a mortgage at all.
Fannie Mae recently polled 3,000 consumers about their understanding of mortgage requirement rules. The results show that most prospective buyers are drinking from a well of misinformation.
The biggest myth is the belief there is a required 20% down payment to afford a new home. The median down payment for first time buyers is 7%.
Many local and federal down payment assistance (DPA) programs are available, and Fannie Mae and Freddie Mac guarantee loans with as little as 3% down. Current and former service members can obtain VA loans with as little 0% down.
Education is the key to removing these obstacles to homeownership. Credit scores, budgets and mortgage fundamentals aren’t things that comes naturally.
That’s what Bay Equity Home Loans brings to the table. We’re local. And knowledgeable. Our seasoned team of professionals has decades of combined expertise and the loan programs to help buyers qualify.
We know the ropes on multiple federal, state, and private DPA programs designed to help everyone – including low-to moderate-income folks - get into a home today.
Call, email or drop in at your local Bay Equity branch for a free mortgage consultation today. Many people are surprised to find that not only can they buy in this lifetime - they can afford to buy immediately.