Millennials are not buying homes often in many areas, and there is good reason.
Millennials don’t always have the money for a downpayment to buy a home!
An article in USA Today discusses the student debt and lack of savings that can create this issue.
A company by the name of Apartment List figured out how long a buyer would have to save to have a downpayment for a median-range priced condo in 31 major cities. Baltimore came in at 9.2 years.
Baltimore condos right now are selling at a median price of $204,800. If a buyer would need to put 20% down, then they would need to have $40,960 in the bank – in addition to closing costs, mortgage fees, and additional monies a mortgage company may need one to have in reserves.
The good news is that there are MANY loan programs where a first time homebuyer does NOT need a 20% downpayment, which could reduce that wait time for most millennials.
FHA mortgages are a very popular choice in Baltimore, with downpayment requirements currently only at 3.25%. Some mortgage companies may offer other mortgage options with 5% down, 10% down or other options depending on a buyer’s qualifications and the location of the home.
Baltimore homebuyers also may have downpayment assistance programs available to them depending on their qualifications, counseling, and amount of money currently located in those funds. The programs can be loans or grants, and have different qualification requirements.
If you are considering buying a Baltimore home, please contact me. I would be happy to put you in touch with one of the mortgage professionals I work with regularly to help you determine your best path to homeownership.