In the Market: A downside of big-city perks

Posted By Nneka Madus In Your Home | No Comments

This weekly feature is a real estate information roundup from a millennial’s point of view. When a young professional moves from Indianapolis (median home price $125K) to San Francisco (median price $1 million), you can expect an adventure. Nneka Madus, an analyst in Bank of the West’s Mortgage Division, did just that and has plenty to share in her quest to own a home in San Francisco.

Two professional men standing at an Italian Subs food truck , deciding what to order. [1]Face it, student loan debt is a drag. Compelling arguments can be made on both sides on whether or not high levels of student loan debt is keeping millennials and first-timers from entering the housing market. As I’ve mentioned before, having student loan debt isn’t necessarily the nail in the coffin for homeownership. It may make it difficult to save for a down payment, but with a little education and preparation you may be able to become a home owner. Besides, we’re millennials; we like a little challenge, right? Whether you want to own a home next month, next year or next decade, managing your student loans and other debt, and your credit score — along with holding a steady job — may help when it comes time to get a mortgage. Allessandra Lanza from U.S. News & World Report [2] gives you four key points to consider.

Millennials like the big city lights. I left Indianapolis for San Francisco, and I don’t think I’ll be moving back anytime soon. I moved for job opportunities, but I also wanted something new, something busier. The bright lights and the hustle and bustle of San Francisco ended up being exactly what I was I looking for — except now I can’t afford to buy a home. My story isn’t unique. Beau Dure from [3] explores the millennials’ urbanization of America. Our generation is moving in droves to bigger, more expensive cities — where we won’t necessarily be able to afford a home right away. Why are we doing this to ourselves? Are we basically shooting ourselves in the foot?

The housing market hasn’t rebounded quite like some experts predicted, but there is at least one bright spot — the Department of Veterans Affairs VA home loan program, which is lending at record levels. Kenneth Harney from the Washington Post [4] gives an overview of one of the housing market’s hottest products and why veterans might want to take advantage. In short, the VA loan program has attractive terms. For many young (and older) veterans, this could be the key to buying a first home.

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