Going from Millennial Renter to Millennial Owner

Have you reached the point where you’re sick of paying your landlord’s mortgage? This might be the time when it hits you and you realize it’s time to start looking into buying a home in New Orleans.

Maybe it’s not just about renting, but also about having a yard for the kids. Maybe you want to get them a dog or maybe you just want to enjoy living in your own space without a landlord to answer to.

Regardless of your reason, you don’t have to remain a millennial renter forever. Right now, it’s a great time to become a millennial owner and ditch the renting for good. Why are you waiting to buy?

Initial Cost can be Steep

Buying a home isn’t cheap. It starts with the down payment and moves on to the closing costs. There’s also many other expenses to consider throughout the process.

One way to cut the costs down is to stop aiming for that 20% down payment, which helps you avoid paying PMI. You can put less down and have the PMI cancelled when you’ve paid enough on your mortgage to build up 20% or more equity in your home.

In addition, if you look into FHA and USDA loans, you can find something with a lower down payment requirement. This could be the answer to going from a renter to an owner faster.

Too Much Student Loan Debt

Many Millennials are strapped to huge student loans, which can range up to more than $50K. However, this shouldn’t make you hesitate when it comes to buying a home and getting out from under your landlord’s thumb.

Many lenders have expanded the DTI or debt-to-income ratio to allow it to be as high as 50% because of student loans. Even Fannie Mae has chipped in by excluding debts that are not mortgage related from the DTI of for the loan, if they are paid by someone else, such as a parent loan, which often shows up as a student loan.

Credit Lower than You’d Like

Maybe your credit is holding you back. If this is the case, you may want to reconsider, as many there are many ways to quickly clean up your credit. Plus, what you think is a low score may not be considered so low by a mortgage lender.

Even with a score below 600, it could be possible to buy a home. There are mortgage programs for many lower credit buyers and other ways to make sure you qualify. It’s certainly worth looking into. Even if you cannot buy now, you’ll be able to put together a plan to get to a place where you can buy.

You don’t have to be held back by the initial down payment, student loans or by your credit if you want to buy a home. Before you dismiss the possibilities, check with a lender and find out what your options are now. Many lenders have programs for all types of buyers and all you have to do is ask.