Could a down payment program help you move up to your next home?
Yes, it could! That’s why there is an increase in the share of programs without a first-time homebuyer requirement, meaning more homeownership programs could serve repeat and move-up buyers. Here, keep in mind that a first-time homebuyer is defined by HUD – someone who hasn’t owned a home in the past three years. Also, if you’ve owned a home before and have been renting the past three years, you’re also a first-time homebuyer.
However, most new and repeat homebuyers don’t know much about their down payment options. So, what are your plans? Are you prepared?
Gen-Z is ready to do what homeownership takes
When it comes to planning generation-to-generation, one thing is always the same – the strong desire to own a home. The Bank of America Homebuyer Insights Report says that a majority of prospective Gen-Z homebuyers, aging between 18 and 23, want to buy within the next five years. Half of them are already saving for a home. That simply means a lot of first-time homebuyers are setting up some long-term wealth building.
As mentioned above, young prospective buyers are saving for a down payment and closing costs. They might see it as less challenging than other generations used to do. So, is our youngest generation more knowledgeable about down payments than others? Let’s find out!
Gen-Z might be young, but they are willing to achieve their goal by making strong decisions, such as getting financial help and making sacrifices. And, it’s not just about the money of mom or dad – down payment assistance is also ranked as a key solution for them. Also, Gen-Z was the most likely to consider attending a college/university that would leave them with the least amount of student loan debt.
Are You a Young Homebuyer?
If you’re a motivated Gen-Z buyer, you are not the only one. You might be making your five-year home buying plan and saving to buy a home, but what else is required to stay prepared?
Here’re a few good tips to guide you:
- Consider taking a homeownership class, especially the ones offered on weekends. Connect with your state or local housing finance agencies. You can also check out online homebuyer education at Isatou Ceesay – a leading Lynnwood WA Realtor where we buy houses.
- Interview at least three lenders to find the best fit for your needs.
- Don’t forget to research down payment assistant programs in your region.
- Also, consider house hacking. If you own a home and it’s your primary residence, but you rent it out to earn income, it will help offset the cost of your mortgage and other expenses.
For more help or assistance, talk to Isatou Ceesay Realtor.