Recent surveys over the past year or so have all come to the same basic conclusion- millennials aren’t buying homes. Those twenty-somethings may want to buy, but for any variety of reasons they continue to mostly rent, but a recent survey by the Consumer Reports National Research Center provides a bit of insight. What’s holding them back and why should they think seriously about buying now and not later? After all, buying and owning real estate is the best way to create long term wealth and financial security.

According to the report, saving up for a down payment seems to be the biggest obstacle for at least one-third of those surveyed. Yet if that’s the main reason, and it’s a good one, there are options for those who do want to buy. That group accounts for 71 percent of those polled. But that shouldn’t be that much of a problem if they explore an FHA loan which only asks for a low down payment.

This age group is also carrying more debt than previous generations primarily due to the cost of college, with the average graduate carrying about $20,000 in debt which roughly translates to around $250 per month. High rents are also taking more cash from millennials making it more difficult to buy. That said, a low down payment makes it easier to buy and begin building equity.

FHA loans also allow for the down payment to be a gift from a family member or a local non-profit. As well, closing costs can be paid for by the seller or the lender can arrange for a closing cost credit. It’s much easier to qualify and purchase a home using this program but if the respondents in a survey feel that saving for a down payment is the main reason for not buying they’re not as educated in the home buying process as they should be. The vast majority of first timers use the FHA program due to its low cost and competitive interest rates. The problem is millennials are getting some bad information.

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