The Pros And Cons Of Homeownership

1053 Words5 Pages
The American dream, known as being married with 2.5 children in a home that has a white picket fence is continually being redefined by millennials. Homeownership is no longer used by millennials to identify with personal success. One can attribute this directly to the housing crisis of 2008 – 2012. A great deal of millennials saw their parents’ signature personal achievement, attained wealth, along with the savings utilized to acquire that supposed liquid wealth, be dissolved due to no fault of their own. The 401ks, thrift savings plans, pensions, early retirements by way of buy outs, were put into what was billed as homes their parents would live out their retirement years in. The equity in many of these homes was specifically to send millennial children to colleges. With the aim of giving them a leg up by not being saddled with an abundance of student loan debt upon graduation. Giving them the opportunity to purchase homes and pass on what’s referred to as Legacy wealth. Homeownership had been cast as a symbol of stability. Parents meticulously pursued homes in areas with good schools that promoted healthy academic and innovative student competition, low crime rates and social programs developing students for future leadership roles in the country. Municipalities where budget constraints did not exist…show more content…
However, that is no longer the case, regardless of agency, program or product. Acceptable credit scores known as FICO, (Fair Isaac Corporation) are now a minimum 660 – 680. If millennials want to take advantage of these affordable housing programs and products that previously accepted marginal credit scores, they must have stronger monetary contributions in the form of down payments. Gone are the 2.75% for FHA and 3% FNMA & FHLMC down payment mortgage loans with the former credit scores for first time
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