Many prospective homebuyers who could get a mortgage think they’re ineligible, says Rob Chrane, president of Down Payment Resource. This is an organization that helps to connect homebuyers with down payment assistance programs.

Inman News tells MHProNews that millions more people can become successful homeowners today — they simply don’t know they can or how to do it. Research data throughout 2014 proved beyond doubt that millions more Millennials and boomerang buyers could afford a home than they themselves believed.

“Our industry is not making the most of this opportunity,” Chrane said.  He cites the chart below that gives the numbers of 25- to 34-year-old renter households who can afford a median-priced home in select markets. This was compiled from research by the Harvard Joint Center for Housing Studies and the American Community Survey at census.gov.

Chrane admits that student debt, the job market and the alleged desire by Millennials to defer homeownership have all contributed to the downturn. Saving for a down payment has also been an obstacle to home ownership, now so more than ever.

However, he says that research by Zelman & Associates shows that 60 to 72 percent of prospective homebuyers overestimate down payment requirements, believing that they need at least 11 to 15 percent of the sales price. In addition, 70 percent of U.S. adults are unaware that down payment help exists, according to a NeighborWorks America survey.

“We know that there are billions of dollars in down payment help available across all markets,” Chrane said. “It’s not just for low-income households and low-cost homes. Households earning up to 120 percent or more of area median income can be eligible.”

Chrane admits there are significant challenges when it comes to affordability, but much more can be done with relative ease to educate prospective homebuyers about their home financing options, including down payment programs. “Getting the word out about housing affordability will help to increase sales,” Chrane believes. “It’s just a matter of educating the public and prospective buyers.” ##

(Graphic and Photo Credits: Inman News)

 

Article submitted by Sandra Lane to – Daily Business News – MHProNews.