Hands holding house

If you are like many young Americans, you are assuming you can't afford to buy a home. Maybe you have bad credit, or not enough savings because you're paying back your student loans.

There are many excuses we hear from young buyers - particularly in the Millennial generation - about home buying. You might be surprised how many ways there are to buy a home still even if you can't. Read on to find out more.

#1: No Down Payment

When buyers say they don't have a down payment, sometimes they mean they don't have a 20% down payment. That number seems to have a hold on the collective consciousness.

Who has that much cash lying around? If you're holding out for that big of a down payment, you probably think you will never be able to buy a house.

The good news is that there are ways to pay only 3-5% down payment. The Federal Housing Administration, the Department of Veterans Affairs, or grants available to those with good credit and a stable job are all ways of financing a down payment without having to wait to save that large amount.

Private mortgage insurance is available to those making a lower down payment. Once you hit that 20% threshold of payment on your mortgage, you won't need it anymore.

#2: Bad Credit History

You are not the only one with credit skeletons in your closet. Those late payments you made may have put a dent in your score. However, there are ways around that, especially if you've kept your record clean since then.

If you have paid down your credit cards and you have a steady job, your application might be approved anyway.

Other options include rent-to-own programs, financing through the home's seller or loans from private lenders. There are private mortgage insurance programs that allow for credit scores as low as 620.

If none of this works for you right now, make an appointment with a licensed loan officer to get your credit back on track in as little as a year.

However, there is one thing to keep in mind: those with lower credit scores typically pay a higher mortgage rate and require a higher down payment.

#3: No Credit History

Did you know there are other ways of building a credit history than a credit card?

Experian makes it easy to establish a history by reporting your rental payments or asking your landlord to report them.

#4: Mortgage Payments

If you are a renter, chances are good you are paying more in rent than you would if you owned your own home and paid a mortgage payment.

Typically, landlords are recouping mortgage costs, taxes, insurance, and maintenance while still trying to make a profit.

Think about whether you want to keep paying extra to live in someone else's house or invest in your own future.

#5: New Job

Many times, the thought of owning a home comes with new employment. Better job, better living arrangements!

You might think you have to work at that job for several years before lenders will consider you a serious candidate.

However, as long as your income and your field are good, a short employment history shouldn't work against you, especially if your employer will write you a letter of recommendation.

Bringing it Home

Hopefully, this list helps those of you who have despaired about ever owning your own home. I hope it also encourages those of you who have historically been against home ownership to think again.

If you have any questions about this list or anything else real estate related, please call our office. We would be honored to help!