Buying a home is usually the biggest purchase you will ever make in your life and new data from Bank of America shows that locations and family sentiments are a huge factor for first-time buyers looking to enter the market.
According to Bank of America’s Homebuer Insight 2021 report– which puts first-generation homeowners in the spotlight – found that families play a key role in homeownership by helping with finances or offering advice, and that 43% of those surveyed have bought a home. house because their parents expected it from them.
âFor many first generation homeowners and their families, homeownership is of unique importance, given the collective efforts to overcome financial challenges that can often span generations,â said AJ Barkley, Head of Proximity and Community Loans at Bank of America. “Achieving this goal can create a sense of pride and accomplishment that resonates both with the buyer and their loved ones, including their parents and future generations.”
The survey found that parents of first-generation homeowners instilled in them more than the benefits of homeownership from a young age: 75% of respondents said they learned good financial practices and the benefits of a homeownership. good credit, while 37% of respondents said their parents helped them financially with their first purchase.
Over the past year, 69% of respondents said owning a home has become more important to them compared to previous years, as the concepts of having equity (61%) and having a safe place (73%) come into play.
Prospective buyers also said high rent costs make it difficult to save for a down payment, while near record house prices make market entry difficult. Even though they make home ownership a financial priority, 89% say they can do more to save extra money for a down payment.
According to Barkley, however, the road to homeownership begins long before the search for a home.
âThe journey to homeownership, whatever your timeline, actually begins with your first banking experience and continues as you learn to budget, save money and build a strong credit history,â Barkley said. âBuilding financial confidence takes time and requires making early, consistent and informed decisions that set you up for success. “
âWhile homeownership may seem like a distant dream, knowing the stepping stones and planting one foot firmly in front of the other can get you one step closer to your goal. “
To help first-time buyers, Bank of America has a program called “Bank of America Home Ownership Community EngagementWhich is helping “low and moderate income homebuyers across the country begin to build their personal wealth and family legacy through the power of property” and has received $ 15 billion in funding through 2025.
The program offers two types of grants that do not require repayment:
The Down payment grant The program helps buyers overcome the biggest barrier to homeownership – the down payment. In more than 260 cities and counties across the country, eligible buyers can receive 3% of the home purchase price up to $ 10,000, whichever is less, to be used for their down payment.
The America’s Home Grant The program offers lender credit of up to $ 7,500 that qualifying buyers can use to cover non-recurring closing costs, such as title insurance and registration fees, or to permanently reduce the interest rate. .
Bank of America gleaned survey data from 2,363 adults who are first-generation home buyers who own a home or are considering buying a home in the future. A full copy of the Homebuer Insight report is available here.