Student loan debt is an issue facing many Americans. But as higher education costs have continued to rise in recent years, the impact on the millennial generation has been particularly challenging—and it’s a major reason millennials are putting off homeownership.
According to the Student Loan Debt and Housing Report from the National Association of Realtors, a whopping 83% of millennials cite student loan debt as the main reason for delaying purchasing a home—namely by preventing them from saving for a down payment.
But not having a substantial down payment saved doesn’t mean you can’t purchase a home. According to the National Association of Realtors’ Realtors® Confidence Index, 72% of first-time buyers put down less than 20% for their down payment. And there are flexible loan options, like FHA loans, that require little to no down payment.
If you’re a millennial who’s been letting student loan debt hold you back from pursuing homeownership, it may be time to take another look at your finances. You may be able to purchase a home with a much lower down payment than you’d been aiming for—making homeownership and paying off your student loans a realistic possibility.