Homeownership finds importance among young consumers

Home ownership finds importance among young consumers

The Federal Savings Bank
February, 2013

A recent survey found the importance of home ownership to many young consumers across the country is growing. The survey, conducted by Prudential Real Estate, found the majority of consumers between the ages of 25 and 44 found owning a home to be significant.

However, when broken down into smaller age categories, desire of ownership increased. A reported 77 percent of individuals age 25 to 34, and 78 percent of those between age 35 and 44 felt it was very important to own a home.

Seventy-four percent of young consumers polled in the survey also found that right now would be a good time to buy a home because of the current levels of affordability from low interest rates. Earl Lee, chief executive officer at HSF Affiliates LLC and president of Prudential Real Estate, while discussing the younger generation said "They are generally optimistic about home ownership and, by nature, share a strong sense of community. As important, many were not impacted by the real estate downturn and are looking at today's buying opportunities with keen interest."

As a result of the survey, many believe more buyers will continue to enter the market during the year as interest rates are staying low compared to norms throughout the housing market's history.

VA loans provide home ownership hopes to veterans returning from overseas service

Veterans who are returning from deployment overseas can take advantage of the low interest rates as well as the younger generations' interest in buying a home. The Department of Veterans Affairs offers loan guarantees for eligible veterans to purchase a home for their personal occupation.

A home may be purchased with a VA loan with no money down and eligibility requirements include a good credit score, a sufficient income, a valid Certificate of Eligibility (COE) and meet certain requirements depending on the branch of military service.