Buying a house is generally considered a sign of financial independence, but apparently most young people want help. Even though 58% of first-time homebuyers aged 18 to 34 think buying a house is an adult-like accomplishment, 66% expect some sort of help from parents, according to a recent report from Bank of America.
You might be thinking, “Ugh. Millennials.” In some ways, that’s a fair reaction. Some people expecting financial assistance from their parents when buying a home may also fit the stereotype that millennials are entitled, bad savers and generally irresponsible with money. At the same time, assistance with a down payment isn’t all that uncommon.
A bit more about the data from Bank of America: That 66% expecting help from their parents aren’t just talking about cash. Of that group, 36% expect help moving in; 25% predict they’ll get help selecting a home; 19% anticipate money for the down payment; 19% expect parents to help furnish their home and 15% will turn to parents for help with monthly mortgage payments.
These stats are based on a survey of 801 people — 376 of whom were part of a greater nationally representative group of adults surveyed for the report; researchers surveyed an additional 425 millennials. (The margin of error for the national millennial group is plus or minus 3.5% and plus or minus 5.7% for the millennial-only sample.)
Whether these people are entitled for expecting help is a matter of opinion. It’s no surprise this group of house hunters needs assistance, given their student loan debt and the growing disconnect between home values and salaries. If you want to avoid private mortgage insurance, you’ll need a 20% down payment, which can easily exceed $60,000 at today’s current prices. (The median home sale price in February was $301,400, according to latest data from the Federal Reserve Bank of St. Louis.)
Whether you’re looking for your first home or fourth — and whether or not your parents are assisting — you’ll need a good credit score to get approved for a mortgage. You can see where your credit stands by viewing your two free credit scores every 30 days on Credit.com.
More on Mortgages & Homebuying:
- Why You Should Check Your Credit Before Buying a Home
- How to Find & Choose a Mortgage Lender
- How to Refinance Your Home Loan With Bad Credit