What are the obstacles people face to buying a house?

One of the biggest obstacles to owning a home is the inability of prospective buyers to collect a down payment on the home they want to buy. A number of obstacles can make it difficult to buy a first home. Some consumers face challenges if their debt-to-income ratio is too high. This ratio varies depending on the type of financing, but in general, lenders want the ratio to be less than 40 or 45 percent.

Individuals who are self-employed or who have received gift money to use as a down payment may struggle to provide verifiable documentation of income or the source of the down payment money. A poor credit history, rising home prices, and limited savings are also obstacles that could make it difficult to buy a first home. Listing your own homes for sale is one way to overcome the challenge of not having enough homes for sale. Perhaps the most daunting task, when buying a home, is to save enough money for a hefty down payment.

Due in large part to their socioeconomic status, it is difficult for Generation Y to acquire enough money for a down payment. Often, they are graduating from college and entertaining an entry-level job. Typical entry-level positions are not suitable to supplement a down payment on a home, especially when other living expenses are taken into account. While home buying factors have remained relatively consistent across generations, policy constraints have made it increasingly difficult for this particular time period.

Most homebuyers are surprised when they discover that home interiors (paint, flooring, appliance fixtures, kitchen cabinets and fixtures, decor) cost a fortune. Take advantage of government initiatives such as PMAY, discounts on women's mortgage loans, to reduce the overall burden of your mortgage loan.

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