It's no secret that it can be a tough time to be a Millennial looking to buy a home in 2023. Millennials, having lived through two economic recessions in their early adult years, then entered into one of the most challenging housing markets in our history.
According to the Millennial Homebuying Report: 2023 Edition from Real Estate Witch, 41% of Millennials identified lack of funds for down payment as their primary barrier to homeownership. 92% of Millennials said that inflationary pressures had delayed their homebuying plans.
And 47% of Millennials believe that raised interest rates stand in the way of them being able to take part in the American homeownership dream. The report also says that 3/4th of Millennials believe that the housing market is headed towards a crash in 2023. They cite this as a reason for waiting for rates and home costs to move closer to pandemic era numbers, thereby opening the door slightly to those who had been priced out previously.
But real estate experts say otherwise. As the economy continues to show signs of stabilization and inflation continues to decrease, home prices are unlikely to change dramatically, and the days of 3% and 4% interest rates may be long gone.
Some experts suggest that for Millennials looking to buy, waiting could cost you more in the long run.
Meanwhile, several options remain available for prospective homebuyers looking to save money by using a low down payment program.
100% Financing
Our 80/20 combo home loan* is a low down payment option that doesn’t require monthly mortgage insurance payments. Private Mortgage Insurance, or PMI, is generally an added monthly cost to you when you secure a home loan with a down payment less than 20% of your loan amount. Not having to pay monthly mortgage insurance is a HUGE benefit to you!
With this loan, a primary mortgage covers 80% of the purchase price, a secondary mortgage covers an additional 20%.
This is available on primary properties only.
California Down Payment and Closing Cost Assistance
An eligible first time homebuyer borrower can purchase a home with little or no money out of pocket with a CALHFA in California. Combine the down payment and closing cost assistance together for maximum assistance!
Down payment and closing cost assistance are available to those who have not owned property in the last 3 years. This program allows down payment assistance up to 3.5% (FHA) or 3% (Conventional & VA) of purchase price or appraised value, whichever is less.
Closing cost assistance up to 2% or 3% of purchase price is also allowed. You must have a credit score of 680 or above to be eligible for this program.
Nevada Down Payment and Closing Cost Assistance
If you are looking for assistance in Nevada, our Nevada Home at Last program could be your savior.
Unlike our California option, the Nevada Home at Last program is available to both first-time and repeat homebuyers. You can this for Conventional loans as well as FHA, VA, and USDA loans.
For this program you must have a qualifying income up to $150,000 and a credit score of 640 or higher.
Other Options
Apart from our USDA and VA loans, which cover 100% of the financed loan, our FHA loans offer 97.5% financing with less stringent guidelines than Conventional loans.
You should plan to speak to one of our Loan Officers to determine which program or programs you may qualify for and benefit from.
*Farmers Insurance Group Federal Credit Union (FIGFCU) Portfolio Program. Maximum 1st TD loan amount up to $3 ML. Borrower must become member of FIGFCU to qualify and is available to all Credit Union members who apply for a mortgage, submit and close their loan application. All applications are subject to credit and loan approval. Not eligible in select states: Alabama, Alaska, Florida, Hawaii, Louisiana.
Farmers Insurance Group Federal Credit Union, NMLS #408877. Community Mortgage Funding, LLC, NMLS#266418