Twenty four percent of consumers in a recent survey cited a lack of financial security as a primary obstacle to home ownership, while 23 percent named saving for a down payment. Together, respondents find these financial issues to be nearly as challenging as trying to find the right house to meet their needs.
The survey, conducted by GMAC Mortgage, polled 1,000 consumers nationwide to assess their barriers to home ownership and homeowner education needs.
The survey revealed that consumers see a need for greater home-ownership education, particularly regarding the numerous financial aspects of the home buying process. Consumers were more likely to want to learn new information about financial home-buying issues than real estate and house hunting concerns.
Specifically, respondents indicated the need for greater education in regard to: finding the right loan (20 percent), managing debt (18 percent), evaluating credit (17 percent), finding the right house (16 percent), saving for a down payment (10 percent) and finding a qualified Realtor (7 percent).
Credit concerns and the evaluation of FICO scores also dominated the survey results, as 12 percent of consumers named past or current credit problems as an obstacle to home ownership. The importance of achieving good credit early in life is clearly understood by younger consumers, as 43 percent of survey respondents aged 18 to 24 want to learn more about FICO scores and the evaluation of credit during the home financing process, which is significantly higher than the 17 percent average for all consumers.
Consumers aged 25 to 34 were more likely to cite saving for a down payment (36 percent) and achieving financial security (39 percent) as an obstacle to home ownership than their older counterparts. Notably, a household income of $75,000 emerged as the financial dividing line for consumers who felt financially stable enough to buy a home and those that did not. An average of 30 percent of consumers with a household income of less than $75,000 cited a lack of financial stability as their obstacle to achieving home ownership. Comparably, only 14 percent of households earning more than $75,000 per year viewed this as their primary barrier.
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