Obstacles to Homeownership
For many Americans, owning a home continues to remain just slightly out of reach. For more and more families, saving the money for a down payment is the biggest obstacle to homeownership. Many people mistakenly believe that you have to come up with a down payment equal to 20% of the price of a home. However, mortgage lenders will grant home loans to qualifying home buyers with a down payment of as little as 3 to 5 percent of the purchase price, if the mortgage is insured.
Homebuying and Homeownership are a vital part of the American Dream.
According to data from the U.S. Census Bureau, some of the most prevalent issues families face that deter them in buying a home are:
- A lack of inventory of affordable single-family housing available for sale in many areas where a majority of residents are minority families;
- A need for down payment assistance, which affects minority families to a greater extent than non-Hispanic whites because they have less accumulated wealth that can be used to help children with down payments;
- A lack of access to affordable mortgage credit;
- A lack of understanding of the homebuying process;
- Weak credit histories, often arising from a poor understanding of financial matters and where financial counseling is required;
- A lack of information about available homeownership programs in the community; and
- Language difficulties or cultural differences.
