With the high cost of buying a home today, more millennials in the market for their first home are expecting a little help from mom and dad with their down payment. According to survey conducted by ApartmentList, 7.9 percent of non-student millennials receive help from parents to pay their monthly rent and 17.1 percent expect some assistance with their down payment when they buy a home.
This information corroborates a previously conducted survey by USA Today/Bank of America in which 40 percent of millennials were found to be getting help with everyday expenses from their parents, including rent. With rent and home prices rising faster than wages, affording even a starter home can be a challenge for recent college graduates.
Struggling to save for a down payment without familial help is made a little easier with low down payment options like an FHA loan. Insured by the federal government, these loans require as little as 3.5 down to purchase a home.
Meanwhile, conventional conforming no-point 30-year fixed mortgage rates averaging 4.375 percent, 15-year rates near 3.875 percent and the 5-year ARM averaging 4 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.