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Millennial Home Buying Myths

The iServe Blog

If you've heard it once, you've heard it a thousand times: Millennials don't buy cars, they don't buy houses, and they'd rather live with their parents and pay down their student loans than to take on the additional responsibility of homeownership. Stories about this generation are everywhere, and they definitely don't always paint millennials in the most positive light.

But is it really true that today's generation of 20- and 30-somethings are allergic to residential lending? Would you really rather rent an apartment with a slew of roommates than commit to 30 years of a residential mortgage?

Not surprisingly, the common thinking about this is somewhat skewed toward making younger people look irresponsible or incompetent, but nothing could be further from the truth. Check out these facts about millennials and homeownership, and you just might change your mind about calling up your local residential mortgage company about getting pre-qualified.

1. Most Millennials Aren't Actually Old Enough to Buy a House 

Ok, so you're technically an adult, but statistically most people don't look into residential lending and buying that first house until age 31. Are you 31 yet? If not, you're not alone: Two-thirds of millennials haven't reached that magic home-buying threshold yet. It's not like millennials hate buying houses — they're just waiting until their 30s to settle down, just like their Baby Boomer parents did.

2. The Great Recession Killed Homeownership for Everyone

Tired of taking the rap for being the lazy generation? Blame it on the economy instead. It's not just millennials who aren't calling up their residential mortgage company and lining up for Sunday open houses: Homeownership is down for everyone, as it has been since the housing bubble burst back in 2008. 

3. Millennials Want to Buy Homes...

Contrary to what the think pieces on the sharing economy would have you believe, most millennials still say that homeownership is a major life goal. The American Dream is alive and well, and as this generation ages into their 30s, they become more likely than ever to want to buy a house or condo of their own. 

4. ...But They May Not Be Able to Afford It

The downside is that student loan debt — an average of over $37,000 for recent college grads — makes most millennials believe that homeownership is out of their reach. Instead of reaching out to a residential mortgage company for help, they assume that there's just no way they can spare any more of their income to set aside for a down payment. 

The good news? That may or may not be true, depending on your individual situation. There are residential lending programs designed to help buyers who don't have massive nest eggs to use for a down payment, and the right residential mortgage company will work with you to structure a loan that works for your needs. To find out more, call us at (888) 395-4258, or use our online contact form to get in touch with iServe Residential Lending today.