Sometimes millennials get a bad rap.

Just last month, The Associated Press reported a third of millennials -- people born between 1980 and 1995 -- live with their parents. Burdened by student-loan debt and underemployment and less focused on starting a family, members of Generation Y are choosing to live at home longer.

But despite this trend, there is another.

The local housing market has improved in recent years, with Missouri home sales increasing month over month in 2016, according to data from Missouri Realtors. While there may be some trepidation on the part of the generation just past the cusp of adulthood to make a financial commitment of this magnitude, there are some who are willing to do so.

For the third year in a row, the National Association of Realtors reported the largest group of homebuyers in 2016 were millennials, who comprised 35 percent of all buyers, up 3 percent since 2014.

And many Southeast Missouri millennials are taking the plunge.

"I've worked with a lot of millennials that want that first home, that pride of ownership," Jared Ritter, broker salesperson of Ritter Real Estate, said.

"In my time as an agent, I have personally seen an increase in younger homebuyers," Laura Cunningham, an agent with Realty Executives of Cape County, wrote in an email. "With the low interest rates available right now, I think it's become fairly easy for the younger generation to become homeowners."

Ritter and Cunningham are real-estate agents, but they're millennials themselves. The majority of their clientele fall into their generation as well. Cunningham said until she entered real-estate school, she didn't realize how easy homebuying could be.

"My personal experience has helped me with meeting expectations of millennial buyers," Cunningham said.

Hurdles

Saving for a down payment is a difficult task for people of all ages. Shelly Kaiser, assistant vice president and mortgage loan officer with First Midwest Bank in Jackson, said just a little over a third of her customers seeking a mortgage have a 10 percent to 20 percent down payment.

Each generation has its own reasons for financial hardship that makes saving difficult. According to a survey from the National Association of Realtors, 53 percent of millennials say they are unable to save for a down payment because of accrued student debt.

"There is sometimes a lack of information or lack of knowledge about the possibilities of how agents can help with a down payment, or figure out ways to make that down payment," Ritter said.

Another issue, Cunningham said, is millennial homebuyers sometimes have unrealistic expectations of the type of home they can afford.

Many younger shoppers, she said, are looking for a home with "move-in-ready conditions." These houses, often 15 years old or less, can come with a higher price than a house that may need some work.

Mortgage lenders look at a number of factors when determining eligibility, many of which can be problematic for younger homebuyers. A work history of at least two years, a decent credit score and at least three historical trade line payment references that have existed for a year or longer are all requirements younger homebuyers may not meet right away.

Feasibility

Cunningham and Ritter insist homeownership is possible for the younger crowd, despite potential roadblocks.

"I think a lot of buyers have in their mind that in order to buy a home, you need a perfect credit score and the traditional 20 percent down, but there are so many other ways to purchase a home, some of which require absolutely no money down," Cunningham said.

"You have first-time homebuyer loans and FHA loans with only 3.5 percent down," Ritter said. "Or if you have a rural development loan or a VA loan, there are some loans you can get 100 percent financing."

Kaiser said the majority of her clients, regardless of age, qualify for such loans. Potential homebuyers, she said, should visit a local mortgage lender to determine how much home they can afford.

"There are many loan options available and your lender is there to help you choose the correct one," Kaiser said in an email.

Cunningham said many millennials who can put money down on a home are rarely doing so through personal savings.

"I think many of my generation have inheritance or some sort of gifting of funds from parents or other relatives," Cunningham said.

A survey from NAR said 23 percent of millennials said a gift from a relative or friend helped fund their down payment.

Ritter said there are other ways to make the homebuying process more affordable, such as asking the seller to pay the closing costs.

"The seller can pay that portion; just take it off the top," Ritter said.

Ultimately, Ritter said, the benefits and feasibility of homeownership come down to two factors.

"If you own your own home, you're paying your own mortgage, rather than your landlord's mortgage. And your house payment is almost always lower than your rent payment," Ritter said. "It's an investment."

bbrown@semissourian.com

(573) 388-3630