Survey Says 95% of Millennials See Home-Buying Barriers

Although 78 percent of millennials say purchasing a home is part of the American dream, nearly half see homeownership as out of reach for their generation.

Interest rates, home prices, saving for a down payment, competition, qualifying for a mortgage, a lack of affordable homes and too much credit card and student loan debt were listed as barriers to homeownership by 95 percent of millennial respondents to a Real Estate Witch survey. “Millennial” refers to the generation born between 1981 and 1996 – roughly today’s 28- to 43-year-olds.

Interest rates were a top concern, with half of those surveyed naming them a barrier to ownership. Inability to save for a down payment was also a key finding, with 47 percent of participants saying they plan to pay less than 20 percent on a down payment, and 25 percent have less than $10,000 in savings.

“AHFA’s homebuyer assistance programs are the ideal solution for millennials ready to embark upon this rite of passage," said Single-Family Administrator Carrie Hamaker. "At up to $10,000 in assistance, our Step Up program can double their down payment savings. Combined with additional grants and the tax credit of a Mortgage Credit Certificate, AHFA can slash several of the barriers they face."

Generous MCC Sales Price Limits Lead to Customer Savings

Fairway Lenders 'Step Up' for Homebuyers

"AHFA’s higher Step Up income limit will have the following benefits: 

• Increased Accessibility: More people will qualify, expanding homeownership opportunities. 
• Addressing Affordability: Helps those struggling with housing costs, fostering homeownership.
• Reducing Rental Dependence: Encourages transition from renting to homeownership."

Allison Prillaman, Montgomery

"I think the income limit increase has a handful of benefits! Increasing the income limit opens the doors to a big group of clientele who previously did not qualify for the Step Up program but who may not have had enough saved up for their down payment and closing costs.

I love the Alabama Housing Step Up program because it’s a solid program and truly makes a difference for a ton of first-time homebuyers!"

Alexandra Wise Smith, Montgomery

We Love to Recognize Our Lenders!

Do you have a story worth sharing? Let us know if you’ve had a unique experience while using AHFA programs and we’ll feature you on social media and in an upcoming newsletter. Just send us an email at communications@ahfa.com.

Are you a mortgage or real estate professional who wants to know more about AHFA programs? AHFA offers on-site training on our programs that covers borrower and property eligibility, processing, documentation, income calculations and more.

February 1: 'Doing Business with AHFA' CE class with American Pacific Mortgage and MY Real Estate School, Vestavia

February 9: Lender visit with Kelley Hall of Prime Lending, Montgomery

It's Easy! To schedule an informational visit or training session, simply email Alana Beaugez.