“One in four U.S. adults say they are considering buying a home this year,” according to Realtor Magazine. Talking about minorities in the same article, Holden Lewis, a mortgage analyst at Bankrate.com, said, “Now that the economy has improved and time has passed, maybe they‘re ready to jump back in and own a home again.”
Not too long ago, based on NAHREP’s 2016 Hispanic Wealth Project, we highlighted 8 component goal requirements to help the Hispanic community obtain homeownership. This month, HousingWire talked about the barriers keeping Americans from homeownership. Today, we want to focus on three common barriers from both reports:
“87% of non-owners responded that a down payment of 10% or more is needed to buy a home.”
This is not true. There are many 3% down payment programs available, and even a few that offer 0% down (like VA loans). People need to be aware of the programs available in order to gain access to them.
“Higher rents and home prices…along with limited entry-level supply and repaying student debt have combined to make buying a challenging goal,” said Lawrence Yun, NAR’s Chief Economist.
The second report mentioned the need to obtain commitments from government, builders, servicers and other entities to deploy and support programs that increase the supply of affordable housing stock. We need more houses for sale to fulfill the needs of the number of people who want to buy a home.
NAR’s President William Brown said, “There are mortgage options available for creditworthy borrowers with manageable levels of debt and smaller down payments.”
The other report mentioned the need for housing counseling that improves homeownership sustainability, and we agree! There is a need to help these borrowers reduce their debt so that they are able to buy homes of their own.
As Mr. Brown said, “Those interested in buying their first home in 2017 should review their finances, sit down with a lender to see if they qualify for a mortgage and find a realtor to help them get started on their home search.”