Many people in the millennial generation are under the impression that they cannot buy a home. The most prevalent reason that they think so is that they believe that their credit score is not high enough.
The next reason is they think they do not have enough saved for a down payment.
Well – here’s what I have to say about that.
You Do Not Need 20% Down and a Credit Score of 750 To Buy A Home?
Let’s talk about the 20% down payment. In the past year, 1.5 million Americans purchased a home, and they did so with less than 10% down payment! It is actually possible to buy a home with as little as 3.5% down, or less. And if you are a veteran, your Veterans Administration benefits may require as little as nothing down. And it may be possible to fold your closing costs into the mortgage. So if you believe you need to save 20% for a down payment, change your thinking.
As to the credit score, the minimum credit score to qualify for an FHA loan is 580. Now, is 580 less than 750? The proper answer is YES.
So – if all of these millennials think they need a 750 credit score and 20% down, and they don’t, why aren’t they buying a home?
There are only two answers I can come up with.
- They have received incorrect information and did not verify that information.
- They are idiots.
The key to financial freedom is to own your own home, not renting a home.
Please let me know your thoughts.