debt and home ownership

Millennial Home Ownership Declining

Millennials have gotten good at many things in today’s society like taking selfies and social media. Buying homes? Not so much.
According to the Census Bureau only 36% of U.S. Citizens under the age of 35 own a home. That number is down from 42% as of 2007 and is the lowest level since 1982.
Nearly 90% of Millennials prefer owning over renting according to a survey done by Fannie Mae. However, student loan debt, strict lending standards and competition have made it very difficult for young Americans to purchase a home.
Most Millennials simply cannot afford to large 20% down payments and most others do not have good enough credit to qualify for loans. Access to financing seems to be a large barrier for younger people.

 Debt Problems for Millennials

“Our problem is an obvious one — debt,” said Mike Kennedy, a 32-year-old marketing director who lives in Northboro, Mass. “My wife just graduated with her master’s and I’m still paying off mine.”
With nearly $50,000 in student loans in debt, affording a home can be difficult when prices range up to $300,000
Several places are simply impossible to afford. Cities like San Francisco, Los Angeles, and New York are simply too expensive for the majority of people looking to buy homes.
Competition is so difficult for young buyers because they cannot compete with older buyers who simply have more money and can afford to pay in cash.
Thomas Bright of Richmond, Va., lost in two different ways.
“When you are a first-time buyer, you aren’t poised to compete with all-cash buyers,” he said.
Finding property can be a challenge within itself, despite the housing bust that eliminated 20% off of home prices. There are fewer houses to be sold on the market.
“Usually, the good homes go quickly”, according to Richard Ernsberger, 34, an attorney who lives in Pittsburgh.
“I have been in the market for a one- or two-bedroom townhome or condo for several months,” he said. “It seems as though a good number of homes go within days of being listed.”
Josh Czupryk (29) an education coach, and his wife Bailey Cato a teacher, (28) wanted to live in a safe Memphis Tennessee neighborhood.
 “Every one we looked at had a fatal flaw,” he said. One house had a blighted one next door. Another had a completely paved backyard.
Czupryk and Cato ended up finding a 4 bedroom home for $295,000. Fortunately for them, they did not have any built up student loan debt..
“There is a ray of hope for young wanna be homeowners”, said Fannie Mae’s Deggendorf. “Mortgage lending is getting a little less tight, with lenders approving buyers with a little lower credit score and who have less of a downpayment,” he said.
 Millennials have gotten good at many things in today’s society like taking selfies and social media. Buying homes? Not so much.
According to the Census Bureau only 36% of U.S. Citizens under the age of 35 own a home. That number is down from 42% as of 2007 and is the lowest level since 1982.
Nearly 90% of Millennials prefer owning over renting according to a survey done by Fannie Mae. However, student loan debt, strict lending standards and competition have made it very difficult for young Americans to purchase a home.
Most Millennials simply cannot afford to large 20% down payments and most others do not have good enough credit to qualify for loans. Access to financing seems to be a large barrier for younger people.
 “Our problem is an obvious one — debt,” said Mike Kennedy, a 32-year-old marketing director who lives in Northboro, Mass. “My wife just graduated with her master’s and I’m still paying off mine.”
With nearly $50,000 in student loans in debt, affording a home can be difficult when prices range up to $300,000
Several places are simply impossible to afford. Cities like San Francisco, Los Angeles, and New York are simply too expensive for the majority of people looking to buy homes.
Competition is so difficult for young buyers because they cannot compete with older buyers who simply have more money and can afford to pay in cash.
Thomas Bright of Richmond, Va., lost in two different ways.
“When you are a first-time buyer, you aren’t poised to compete with all-cash buyers,” he said.
Finding property can be a challenge within itself, despite the housing bust that eliminated 20% off of home prices. There are fewer houses to be sold on the market.
“Usually, the good homes go quickly”, according to Richard Ernsberger, 34, an attorney who lives in Pittsburgh.
“I have been in the market for a one- or two-bedroom townhome or condo for several months,” he said. “It seems as though a good number of homes go within days of being listed.”
Josh Czupryk (29) an education coach, and his wife Bailey Cato a teacher, (28) wanted to live in a safe Memphis Tennessee neighborhood.
 “Every one we looked at had a fatal flaw,” he said. One house had a blighted one next door. Another had a completely paved backyard.
Czupryk and Cato ended up finding a 4 bedroom home for $295,000. Fortunately for them, they did not have any built up student loan debt..
“There is a ray of hope for young wanna be homeowners”, said Fannie Mae’s Deggendorf. “Mortgage lending is getting a little less tight, with lenders approving buyers with a little lower credit score and who have less of a downpayment,” he said.
 
Clearwater Debt Collection Attorney

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