Millennials get a lot of flack just for being born in a certain window of time. From killing to golf industry to not having enough children, if something bad is happening, millennials are probably being blamed for it by someone. With all this negativity being directed at millennials, it’s no wonder so many of them think there must be some truth to the falsehoods in order for them to be so prevalent. Fortunately for millennials interested in homeownership, many of the things being said about them in relation to real estate are completely untrue. Here are some of the most popular myths about millennials buying homes and why they’re wrong.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

1. Millennials Can’t Own a Home Without Two Incomes

The quintessential American Dream is said to be buying a home, but homes aren’t as affordable now as they were in the 50s. This leads people to assume that homeownership is impossible without the advantage of two peoples’ combined paychecks. However, this isn’t true. While having two paychecks certainly helps with the down payment and mortgage, there is no consistent reason a buyer needs to wait to buy a home. As long as the buyer can afford all the payments that go with buying the home, they can buy that home.

2. Millennials Can’t Afford the Down Payment

When looking to buy a home, many sources will tell the buyer that they need to have a 20% down payment ready up front. Even on a home that costs $100,000, a $20,000 down payment can be a lot to save for millennials. But fortunately, it isn’t necessary to have a 20% down payment. There are certain loans available that allow the buyer to have as low as 3% down or even skip the down payment entirely. FHA loans are a good example of reduced cost loans, while VA loans are an example of the latter. Going back to the hypothetical $100,000 home, a 3% down payment would be just $3,000, which is far more attainable for more people.

However, one thing buyers do need to take into account when using a loan with reduced down payment costs is that they will likely have to pay private mortgage insurance (PMI). This PMI will be added to their monthly mortgage payment, so buyers will need to account for the extra cost.

3. Millennials Can’t Buy Homes Because They Have Student Loans

No one likes being in debt, and unless a buyer has enough cash to buy a Green Hills home without using a mortgage, that buyer is going to have to take on some debt. However, may millennials already have quite a bit of debt already thanks to student loans. In America, the average amount debt is more than $37,000, which is not a small number. Because of this debt, many millennials think they can’t possibly buy a home and take on more debt on top of it. However, this isn’t quite true. Anyone, millennial or not, can take out as many loans as they want. Problems only occur when they can’t pay the loans back, so as long as the buyer knows for sure that they can afford the mortgage payment on top of their student loan payment and any other payments they have, they can buy a home with confidence.

Homeownership is very possible as a millennial, even though harmful myths try to say otherwise. Keeping these truths in mind can help millennials attain their dreams of buying a home and starting the next chapter of their lives. 

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.