Millennials have surpassed Baby Boomers as the nation’s largest living generation, according to the U.S. Census Bureau. This generation is forming most of the new households and buying a majority of the new and existing homes. One-half of all U.S. homebuyers are younger than age 36, according to recent housing trends.
However, while many Millennials are buying homes, many others are not. That’s because, financing hurdles are keeping a significant number Millennials out of the market. The most common roadblocks include student loan payments and high rental costs that sap the ability to accumulate a down payment on a mortgage. This results in a “rent trap” that is difficult for many to escape.
There is, however, a little-known mortgage alternative available through the United State Department of Agriculture (USDA) that can be a boon for many Millennials, as well as, other first-time homebuyers.