Monday, October 30, 2017

Renters Would Like a Little Help

What is the biggest obstacle to buying a home today? According to a Fannie Mae survey, it's coming up with enough money for the down payment and closing costs—cited as a barrier to home buying by 45 percent of the nation's renters.

Most (82 percent) of today's renters expect to buy a home someday. But many just don't have the cash it takes to do so—unless they get financial help from their parents or other family members. Some renters think they can count on that help. Ten percent expect to receive financial assistance from their family when they buy a home, less than the 20 percent of current or former homeowners who say they received financial assistance from their parents/family members when they bought their home.

Many Americans plan to help out when the time comes. When asked whether they plan to help out financially when their children or other family members buy a home, a substantial 38 percent of respondents said yes and 16 percent had already done so. How important is this financial help? Among homeowners who received family help in the past, 25 percent said they could not have bought their home without it, and another 39 percent said it allowed them to buy a home sooner.

Source: Fannie Mae, National Housing Survey, Renters Report Future Home Buying Optimism, while Financial Assistance is Most Available to Populations with Higher Homeownership Rates

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