How Do Millennials Enter the Housing Market?

Bankrate recently published a report that held some astonishing finishings. It was centered around how Millennials find their way into the housing market despite all the obstacles they face. It found that millennials between the ages of 18-26 spend way more daily on habitual expenses than any other generation. These expenses are things like going out with friends for a beer, getting coffee multiples times a week, buying things online, eating out etc. With all this spending it’s a wonder how they manage to save any money for a down payment. 

From the report, 54% of the surveyors say they eat out at least three times a week; the Gen-Xers who tallied at 33%. 30% of them say they buy coffee at least three times a week. And the millennials of drinking age to 26 say they go out drinking with friends at least once a week. 

The other problem facing millennials that no other generation had, is crippling student debt. The total amount of student debt in our country is a whopping 1.3 Trillion dollars, all while college tuition keeps rising every year. How in the world do the find the money to stash away for a downpayment. 

One method that seems to be working pretty well is the low-downpayment mortgages offered by some big name banks. Another method is utilizing the Veteran and active-duty service member private loan, which is issued by the Department of Veteran’s Affairs, and the Navy Federal Credit Union is an option where they can get a zero-down mortgage. Who needs to tighten their belt when they have the options before them?

You don’t need to be in the military to qualify for a low-downpayment loan. All you need is nearly perfect credit. Now they will be required to have mortgage insurance, either through FHA or a private company. 

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