Nowadays, it’s less common for young adults to own a home. While homeownership offers numerous advantages, many young people are forced to rent because there are a lot of barriers that keep them from owning a home.
Between student loan debt and the less than stable job market, there are many barricades that make it difficult for young professionals to step into homeownership. And, according to a recent report, the rising cost of home prices and declining inventories are also keeping young first-time buyers out of the real estate market. Young buyers typically have less money to spend than older and existing homeowners.
The report states that home prices have increased 5.1% just in the past year. They’re expected to jump another 2.7% through October 2017, with some studies indicating that the prices could rise even higher. This presents a big problem for those looking to become homeowners. They’ll need more money for a down payment and closing costs. Not to mention, they’ll need more money to show their creditworthiness to lenders and prove that they can pay off a pricier mortgage loan.
Due to the many obstacles they face, it’s not uncommon for first-time buyers to be denied for a traditional mortgage. Fortunately, there are some ways young professionals can sidestep these barriers to homeownership and achieve their dream of owning a home.
One way is through alternative financing sources. Athas Capital Group, for instance, offers a variety of alternative lending solutions, including nonprime loans, non-QM loans, and hard money loans. With their transparent lending programs, borrowers can get the money they need to close a home deal and fast. To learn more, visit www.athascapital.com.