First Time Home Buyer’s Downpayment Still An Obstacle In MN

Trulia’s Fall 2011 American Dream survey reports more than 1/2 of all renters who would like to buy a home say they are unable to because of down payment requirements.

62% of young adults (18-34 year olds), state that as a first time home buyer, lack of down payment has prohibited them from buying a home. Home buyers aged 35-54 are more concerned with qualifying for a loan because of having poor credit.

From saving enough for a down payment to qualifying for a mortgage and having a poor credit history, today’s aspiring home owners face many financial obstacles in order achieve their American Dream of home ownership,” says Jed Kolko, Trulia’s chief economist. “These obstacles keep some would-be home owners from taking advantage of low mortgage rates. On the other hand, they prevent some people from buying homes they can’t really afford. Government home ownership policies can target some of these obstacles to home ownership, but only stronger economic recovery will help households facing multiple obstacles become better able to buy homes.