Being a millennial is being told the financial “rules” your whole childhood only to grow up, get into debt for a degree but be unable to find a high enough paying job to keep up with inflation, and then rent for the rest of your life. Or so the rumors say. Actually, the data also backs these claims.

Statistics show that 25% of Millennials will be renting indefinitely, and only 40% of Millennials are current homeowners, compared to 65% of Gen X, 77% of Baby Boomers, and 80% of the Silent Generation. While there are definite pros to renting a property (easier to move, don’t have to deal with the estate tax, renovations, or upkeep costs, etc.), homeownership can give people a sense of security, the ability to put down roots, and grow generational wealth. It’s no wonder millennials are upset that homeownership isn’t obtainable for most of us when we’ve followed all the rules. So, what can millennials do?

The first thing anyone looking to purchase a home should do is to get pre-qualified so that potential buyers have an idea of what they can realistically afford, and what kinds of loans they qualify for. Once you have an idea of that, you can look into these options:

There are currently several government programs available for first-time homebuyers. Often, these programs have limitations like income limits, location-based, etc.

#1 FHA Loans

The Federal Housing Administration (FHA) has a loan program that insures homebuyers’ loans so that lenders can offer lower down payments, closing costs, and mortgage payments. People who are first-time homebuyers, seniors, and manufactured/mobile homebuyers can qualify. FHA loans are often location-specific and must be used in conjunction with an FHA-approved lender.

#2 VA Loans

Veteran Affairs (VA Loans) are available as an option for service members, surviving spouses, and veterans. It is a government-backed mortgage option. The VA loan can be used not only for buying a home but for renovations and refinancing as well. Because VA loans can only be used for first-time home-buying, a civilian can assume a VA loan that is attached to a property. One of the biggest benefits of a VA loan is its assumption, which is that civilian buyers can inherit the low mortgage payments and interest rates.

#3 USDA Loans

USDA Loans are for buyers buying in eligible rural areas and towns. The USDA loans are guaranteed by the U.S. Department of Agriculture. Essentially, it is a zero-down-payment mortgage. USDA loans also feature lower interest rates, in addition, traditional private mortgage insurance (PMI) isn’t required.

#4 State Homebuyer Assistance Programs

Each state also has its own homebuying assistance programs, and they vary by state. For example, some programs offered in Arizona include Recovery Housing Programs, Down Payment Assistance, and Housing Insecurity Flexible Funds. Each state has a Department of Housing website with all the available information for your state.

#5 Down Payment Assistance (DPA)

The down payment is a percentage of the cost of the home that buyers need to pay upfront in order to purchase a home. Typically, the larger the downpayment, the cheaper the monthly mortgage payment, and the lower the interest rates. So, DPAs help first-time homebuyers with this high cost. Usually, they are grants that come in the form of no-interest loans, and depending on what you qualify for, you might not even need to pay them back.

#6 HCV Homeownership Program

The Housing Choice Voucher (HCV) Homeownership Program is a housing assistance program that supplies qualifying first-time homebuyers a voucher that covers a downpayment and other expenses, in addition to monthly assistance. Recipients must have received housing counseling, meet minimum income requirements, and must be first-time homebuyers.

#7 Kamala Harris’ $25,000 assistance plan

A big staple in Vice President Kamala Harris’ economic plan she is running on is to give up to $25,000 down payment assistance to first-time home buyers. Vice President Harris’ says that her plan will benefit over four million buyers over four years. In addition to this assistance, there will be an incentive for builders to create starter homes that are sold to first-time buyers.

The only requirements we know so far are that applicants will have needed to have paid rent on time consistently for at least two years before applying. Some details remain vague, such as whether the program will rely on geographic regions or income levels, how it will be distributed, and whether undocumented immigrants will be eligible for the program. Because the funding needed will be around $400 billion over a four-year period, congressional approval will be needed, which could be one of the bigger implementation hurdles.

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