According to a recent report from Bank of America, 66% of first-time homebuyers aged 18 to 34 are not quite ready to cut the financial cord, even though 58% of those buyers think buying a house is an adult accomplishment. That’s because 66%, or roughly 2/3 of those surveyed, expect some sort of help from their parents.
This doesn’t necessarily mean that they are expecting an influx of cash up front from Mom and Dad. Of that group, 36% expect help moving in; 25% predict they’ll get help selecting a home; 19% anticipate money for the down payment; 19% expect parents to help furnish their home and 15% will ask their parents for help with monthly mortgage payments.
But there’s no need to worry if Mom and Dad can’t help out with the purchase of your first home. Why not? Well, because there are various grants and programs available to make the home buying process significantly easier and more affordable! Here are three examples:
• First-Time Home Buyer Grant: allows eligible buyers to receive matching funds for down payment and closing cost assistance.
• Community Development Administration (CDA): offers up to $10,000 in down payment and closing cost assistance. This is a great loan program for first-timers who have limited assets for down payment.
• Community Homeownership Incentive Program (CHIP): allows eligible first-time buyers to put down as little as 3% (city down payment assistance available and minimum $500 borrower’s contribution required).
So yes, this all means that home ownership may be closer than you think!
If you’ve been considering purchasing a home, but aren’t sure where to start or what you can afford, contact us today! Our buyer agents and lender partners can help you design your path to affordable homeownership. Whether it’s to explain financing options, provide tools to boost your credit score, or apply for your home loan, we are here to guide you through every step of the home buying process.