Debunking Home-Buying Myths for Millennials and Gen Z
Lisa Mailhot | August 16, 2024
Buyers
Lisa Mailhot | August 16, 2024
Buyers
Many young people today, like Lindsay Hardy, a marketing director in Philadelphia, feel that homeownership is beyond their grasp due to economic barriers and market complexities. However, a deeper look into these concerns reveals that much of their hesitation is based on prevalent myths.
Contrary to popular belief among young generations, today's interest rates are not the highest on record. Alex Shekhtman, CEO of LBC Mortgage, points out that while millennials and Gen Z grew up during economic turmoil, such as the 2008 financial crisis, they witnessed historically low rates during the COVID-19 pandemic. It's crucial to understand that while current rates may seem high compared to the all-time lows of recent years, they are still relatively manageable compared to the sky-high rates of the 1980s, which once peaked at 18.63%.
Another significant barrier is the assumption that a home purchase requires a 20% down payment. However, various programs such as FHA loans, VA loans, and USDA loans, along with Conventional 97, HomeReady, HomePossible, and HomeOne programs, offer opportunities to put down as little as 3%. This makes homeownership more accessible than many young buyers realize.
A common misconception is that stellar credit is a prerequisite for buying a home. In reality, many loan programs are available even if your credit score is not in the 'excellent' range. FHA loans, for example, are obtainable with a credit score as low as 580 (or even 500 with a higher down payment). Potential buyers need to look beyond the myths and understand that there are numerous options available to accommodate different financial situations.
If you're a Millennial or Gen Z individual thinking about homeownership but feel deterred by myths and misconceptions, it's time to look at the facts and explore your options. Homeownership could be more attainable than you think. For those considering a move to Orange County, let's connect and find the right home for you!
Homebuilder confidence is ticking upward as the Federal Reserve’s recent rate cuts offer a glimmer of hope for the housing market. Despite lingering challenges like ma… Read more
President Trump’s new tariffs on imported lumber, cabinets, and furniture are expected to raise homebuilding and renovation costs nationwide. This blog explores how th… Read more
Across the U.S., new listings are on the rise, yet many buyers remain cautious as mortgage rates hover above 6%. In Orange County, this national slowdown echoes local … Read more
Home-purchase cancellations hit a record high this August, revealing a shift in buyer confidence and seller expectations. From inspection issues to changing financial … Read more
Mortgage applications in the U.S. dropped last week after interest rates increased for the first time in a month. According to the Mortgage Bankers Association (MBA), … Read more
National home values edged up slightly in July 2025, but the latest Case-Shiller report shows key Southern and Western metros experiencing price declines. While the No… Read more
Housing costs continue to climb, leaving many Americans struggling to keep up. A new survey reveals that families are making tough sacrifices—from moving in with paren… Read more
Summer 2025 marked the strongest buyer’s market in over a decade, with significantly more sellers than buyers across the U.S. While mortgage rates have dipped, afforda… Read more
Housing starts across the U.S. fell in August, marking the lowest levels since May. Both single-family and multi-family construction declined, while permits also slowe… Read more
Let's find a time that suits you best to chat about your goals, show you how we work, and figure out how we can help you the most
Get In Touch With Lisa
Broker Associate
949-877-7087
124 Tustin Ave Suite 200, Newport Beach, CA 92663
