A New Perspective on Homebuying: The Mixed Millennial Return to Articles
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For most Americans, buying a home is a rite of passage, unless you are a millennial who happens to be a person-of-color, or LGBTQ+ ally, or an interracial couple. Many people in these categories are limited financially and socially.
And it isn’t the avocado toast or the wanderlust that has us penny-pinching. The student debt, the discrepancy between wages and the cost-of-living, and our belief in civil rights limits where we want to buy our homes.
As a mixed millennial in an interracial relationship, we find ourselves at odds with the world. We strive to live and contribute to a community that supports the same civil mentality. But often these locations are not in our budget.
Student Debt > Down Payment
As it stands, we both have student debt. And combined, our student debt equates to the down payment of an approximately $300,000 house. Too bad the average home is $408,000 in Colorado.
The increasing education debt has further raised our debt-to-income ratio, making it harder to save money. And honestly, it seems risky to use large loans in the home buying process, especially in this economy with an unstable labor market and restrictive credit standards.
Housing costs affect diversity
We are a heterosexual couple living in Boulder, CO. Great, right? Until you factor in the interracial aspect and the rent. High rental costs make it difficult to save for a down payment, and the farther we move from densely populated areas, the fewer career opportunities we find.
Even in liberal Boulder, we experience racism; people stare us down or refuse to acknowledge us in restaurants. Have you ever been stalked through Target by a security guard? These experiences aren’t encouraging.
Cities like Boulder lack diversity because of the short supply of affordable housing. The increase of multi-million dollar homes creates a gentrified atmosphere and suppresses the all-accepting environment we want to call home.
The More You Know….
So, will we ever be homeowners? Yes, but first we hit the books.
1.
Identify First Time Home Buyer Programs
:
There are state and national programs. Many local authorities can combine down payment grants with lower interest rates and possibly federal tax breaks.
2.
Calculate How Much Home You Can Afford:
You need to consider your debt-to-income ratio compared to the down payment.
3. Explore Your Options: You can
compare down payment options
, like loan types with lower down payments, and different mortgage lenders.
4.
Get Pre-Qualified:
Getting approved can lock your rate and give you an advantage over other buyers.
Social Media Marketing Analyst, RezDox
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