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It’s no secret 2023 can be a tough time for millennials looking to buy a home. Having lived through two economic recessions in their early adult years, millennials then entered one of the most challenging housing markets in our history.

According to the Millennial Homebuying Report: 2023 Edition from Real Estate Witch, 41% of millennials identified lack of funds for a down payment as their primary barrier to homeownership. 92% of millennials have delayed their homebuying plans due to inflationary pressures. Further, 47% of millennials believe raised interest rates stand in the way of being able to take part in the American homeownership dream.

The report also states three quarters of millennials believe the housing market is headed towards a crash in 2023. They cite this as a reason for waiting to purchase – they’re waiting for rates and home costs to move closer to pandemic era numbers, thereby opening the door slightly to those who have been priced out previously.

But real estate experts say otherwise. As the economy continues to show signs of stabilization and inflation continues to decrease, home prices are unlikely to change dramatically, and the days of 3% and 4% interest rates may be long gone. Some experts suggest for millennials looking to buy, waiting could cost more in the long run.

Meanwhile, several options remain available for prospective homebuyers looking to save money by using a low down payment program.

97% financing

Our Conventional home loans offer 97% financing1 in all counties, up to a $1,089,300 loan amount – high-cost county restrictions don’t apply. This may help you avoid having to jump through the hoops of a traditional Jumbo Loan in counties that aren’t eligible for high-cost loan amount financing. This program is available to both first-time and repeat homebuyers.

90% financing

Our 80/10/10 combo home loan1 is a low down payment option that doesn’t require monthly mortgage insurance payments. Private Mortgage Insurance, or PMI, is generally an added monthly cost when you secure a home loan with a down payment less than 20% of your loan amount. Not having to pay monthly mortgage insurance is a huge benefit to you.

With this loan, a primary mortgage covers 80% of the purchase price, a secondary mortgage covers an additional 10% and you pay the remaining 10% out of pocket as your down payment.

1st Trust Deed loan amounts are available in all counties up to $1,089,300 – high-cost county restrictions don’t apply. This maximizes your Conventional Loan buying power and may help you to avoid having to jump through the hoops of a traditional Jumbo Loan, when combining a 1st Trust Deed with a 2nd Trust Deed and a 10%  Down payment.

California down payment and closing cost assistance

An eligible first-time homebuyer borrower can purchase a home with little or no money out of pocket with a CALHFA in California. Combine the down payment and closing cost assistance together for maximum savings.

Down payment and closing cost assistance are available to those who haven’t owned property in the last three years. This program allows down payment assistance up to 3.5% (FHA) or 3% (Conventional & VA) of the purchase price or appraised value, whichever is less.

Closing cost assistance up to 2% or 3% of purchase price is also allowed. Applicants must have a credit score of 680 or above to take advantage of this program.

Nevada down payment and closing cost assistance

If you’re looking for assistance in Nevada, our Nevada Home at Last program could be your savior.

Unlike our California option, the Nevada Home at Last program is available to both first-time and repeat homebuyers. You can take advantage of this program for Conventional Loans as well as FHA, VA and USDA Loans.

For this program, you must have a qualifying income – up to $150,000 – and a credit score of 640 or higher.

Other options

Apart from our USDA and VA Loans, which cover 100% of the financed loan, our FHA Loans offer 97.5% financing with less stringent guidelines than Conventional Loans.

Speak to one of our Loan Officers today to determine which program or programs you may benefit from!

Our home mortgage loan products are designed to help get you moving. Let’s get started!

 1Available in all counties for 1st Trust Deed loan amounts up to $1,089,300. Applicable to 1-4 unit properties. Borrower must be a member of SCE Federal Credit Union to qualify. All applications are subject to credit and loan approval. Community Mortgage Funding (CMF) is our credit union owned mortgage company. CMF state licensing.