Illinois Logo

Back

Homeownership For Younger Americans

By Elizabeth Elstien

Younger Americans were not searching for homes when the housing crisis hit, as most were still in college or had just started in the job market. Now that they are out of college and have begun to amass credit history and savings, younger Americans are ready to purchase their first home.

In fact, a recent survey by (Prudential Real Estate) showed that 77 percent of 25- to 35-year olds believe that homeownership is important. Interviews with 5,000 Americans in the market to buy or sell a home or that had recently bought or sold a home were conducted online in the first half of December 2013. Respondents were aged 25- to 64-years old with an income of $50,000 or up.

The housing market has finally begun to pick up and these younger Americans are definitely a part of this, as they feel optimistic about owning a home for the first time. As they were not affected by the real estate downturn, they are especially interested in today's buyer's market with its low interest rates.

Some types of loans require a 10-20 percent down payment of the purchase price. Many lenders also have special first-time homebuyer loan opportunities. Check what programs are available in your area.

Younger first-time homebuyers may also want to consider a government-back FHA loan. This type of loan lets the buyer pay less of a down payment than other loans at 3.5 percent down on the home's value, allowing the new homebuyer a better chance at purchasing a home.

A first-time homebuyer loan usually means a low down payment, reduced interest, limited fees and easier loan qualifying. However, lower down payments mean less immediate equity in the property you purchase and a longer time to pay off the loan. Therefore, loans especially for first-time homebuyers may not be for everyone. Younger Americans are advised to check their budgets and weigh their options.

Share this:

Comments

Leave a comment:

* Login in order to leave a comment. Don't have an account? Join for Free



About The Author

Elizabeth R. Elstien has worked in real estate for over 15 years as a real estate...

View Profile

Become an Expert Contributor

Have some knowledge to share, and want easy and effective exposure to our audience? Get your articles or guides featured on Illinois Homes today! Learn more about being an expert contributor.

Learn More