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Buying a home as Millennial at 24. Defying the Stereotype.

You turn on the news. The message out there is that it’s not possible to buy a home. More news stories report that Millennials are going to make less than their parents. According to a Forbes article Millennials are making 20% less than their Baby Boomer generation parents. Another Forbes article cites a Pew Research Center report that says Millennials live with their parents longer than both Baby Boomers and Generation X did. “For example, as of 2016, 15% of 25- to 35-year-old Millennials were living in their parents’ home. This is 5 percentage points higher than the number of Gen Xers who lived in their parents’ home in 2000 when they were the same age.” Despite what the news says, defy it. I purchased my first home at 24 and so can you.

 
You turn on the news. The message out there is that it’s not possible to buy a home. More news stories report that Millennials are going to make less than their parents. According to a Forbes article Millennials are making 20% less than their Baby Boomer generation parents.

Another Forbes article cites a Pew Research Center report that says Millennials live with their parents longer than both Baby Boomers and Generation X did.
“For example, as of 2016, 15% of 25- to 35-year-old Millennials were living in their parents’ home. This is 5 percentage points higher than the number of Gen Xers who lived in their parents’ home in 2000 when they were the same age.”

Despite what the news says, defy it. I purchased my first home at 24 and so can you.

Here are some steps that you can take to make it possible.

  • FHA loans:  Consider saving money for a down payment. With an FHA loan you can put down as little as 3.5% of the purchase price, instead of the standard 20%.

  • Income property: Consider buying a property that has a rental such as an ADU or a duplex. The rent you collect might allow you to qualify for more financing and make your mortgage more doable.

  • CalHafa:  Don’t have a down payment? No Problem! CalHafa loans offer down payment assistance.

  • Mom/Dad: If your parents are looking for an investment, convince them or another family member to provide down payment assistance, or co-purchase with you. If they don’t have savings they can also consider borrowing on their existing home via an equity loan.

  • Co-purchase with a friend: This can be especially helpful when you buy a duplex.

  • Can’t afford Los Angeles? Consider buying a second home first, even if you rent your first home you still can buy a vacation home. Some great options are areas like Palm Springs, Joshua Tree or Big Bear.

  • VA loan: This loan helps Service members, Veterans, and eligible surviving spouses become homeowners with no down-payment or mortgage insurance.

 
How did I buy a home at 24?

  • Side gigs: I took side gigs to save money. Working a day job while going to school and made extra money selling things I found at thrift shops on eBay.

  • Family a/k/a Roommates: My mom and brother were renting so to help out, rather than me moving in with them, I had them move in and pay rent to offset the mortgage

  • Savings: I got a cookie jar and rewarded myself when I cleaned the house or dyed my own hair. Every week I did something to save money and I would put the savings in the cookie jar. That extra money really helped towards the maintenance of the house.

The largest challenge I had was having Real Estate agents take me seriously. At 24, real estate agents would not help me, thinking I was a waste of time. I think that’s one of the reasons I decided go into Real Estate. I also had 3 dogs and 3 cats and honestly, no one wanted to rent to me.
Whatever you do, don’t waste money on rent. Even if all you can afford is the smallest studio condo in K-town (like my brother purchased), just own something.  
 


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