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!
California’s Prop. 1 housing bond could fund 40,000 rentals and help 40,000 buyers. See what it means for Orange County buyers and sellers.
Record king tides and a Super El Niño are flooding Orange County and SoCal coasts. Here is where the water has hit and what comes next.
Pending sales hit a multi-year October low in Orange County, but equity keeps the market steady. See what buyers and sellers should know.
Housing costs are the top concern for young voters heading into the 2026 midterms. See what it means for Orange County buyers and sellers.
Portable mortgages are back in Congress, but experts see big hurdles. Here is what Orange County buyers and sellers should know.
Tropical Storm Rachel flooded Newport Beach’s Balboa Peninsula. Here is what Orange County buyers and sellers should know about coastal living.
Record heat, wildfires and rising insurance costs are reshaping California moves. See what it means for Orange County buyers and sellers.
Rates above 7.5% are squeezing young voters. See what the affordability squeeze means for Orange County buyers and sellers.
Things to do in Orange County Oct 8 to 11, from Carnival Colossal and Margaret Cho to Irvine Global Village Festival and Chili at the Beach.
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
