Millennials now make up the largest proportion of the population in the US at over 80 million. With so many of these 20- and 30-somethings, one could only assume that they’d simultaneously make up a large part of the real estate market.

But that’s not necessarily the case.

Millennials are taking their time testing the waters of the housing market, for a variety of reasons.

A number of studies have shown that a large portion of millennials – also referred to ‘Generation Y’ – have plans to buy a home some time in the near future, but they’re not quite ready to take the plunge. Whether they’re currently renting or still living with Mom and Dad, the pace at which they’re entering the market is a lot slower compared to their parents’ generation.

So why is this demographic hesitant to jump into the world of homeownership?

They Don’t Have Sufficient Savings

Getting a mortgage to finance a property is pretty tough when your savings account is scraping the bottom and your student debt is sky high. That’s precisely where many millennials are finding themselves.

Most of the country’s $1.3 trillion student debt burden lies on the shoulders of younger Americans. And not only are Generation Yers working hard to pay down their debt, they’re not exactly having much luck finding a place that meets their budget.

With the current housing affordability crisis that’s plaguing many parts of the nation, being financially capable of affording a home is becoming increasingly difficult, especially for first-time buyers. Half of all millennials have less than $1,000 in savings, putting them in no position to be able to put a half-decent down payment on a home.

Lenders are a lot more strict with their lending criteria than they were before the financial crisis of 2008. And considering these young Americans have more debt and less income than prior generations, their debt-to-income ratios tend to be a lot higher than lenders expect. 

Plenty of millennials graduated from school facing a tough job market, and even when they manage to land a good job, they haven’t experienced the income growth that would provide them with enough money to pay down student debt and save for a down payment.

There’s a Ton of Competition

Along with an affordability issue also comes a supply issue, especially in certain pockets of the country like San Francisco and Seattle. And as inventory fails to keep up with demand, prices jump. It’s tough for millennials who are just getting into the real estate market for the first time to find their way in, especially when more and more of the competition is waiving financing contingencies and even going so far as to pay all-cash.

In fact, over 38 percent of single-family home and condo sales as of November 2015 are all-cash transactions. That’s a tough one for any buyer to compete with, let alone a young buyer within minimal savings and a ton of debt yet to pay off. Even with a good credit score and an adequate down payment, it might not be enough when competing with people with cash.

They’re Getting Married and Starting Families Later

Unlike their parents’ generation and those before them, millennials are waiting a lot longer to tie the knot and start families. From the change in culture to the volatile economy, this demographic just doesn’t have the same pressing desire to make such important commitments.

Younger people today are extremely cautious about entering relationships because they’ve seen so much divorce – they’ve been born into and grown up around it. Postponing commitment is becoming more popular, so bad relationships are more likely to end before marriage.

According to research from Pew Research Center, 26 percent of Americans between the ages of 18 to 33 are currently married. That’s much lower than the 48 percent of Baby Boomers and 65 percent of the Silent Generation who were married within the same age range.

And with fewer millennials making the leap into married life, they’re less likely to get into home ownership so soon. According to TD Bank, millennials are less likely to buy a home without a partner or spouse compared to first-time homebuyers from generations past.

The Bottom Line

There’s no doubt that millennials are getting a delayed start to entering the housing market. With mounting student debt, minimal savings, and lack of financial experience, there’s certainly some work that needs to be done. But with the right plan of action guided by a seasoned financial advisor, there’s no reason why millennials can’t put themselves in a stronger financial position and prime themselves to become homeowners sooner rather than later.

The differences between condo ownership as opposed to single detached home ownership are obvious. For one, there are HOA fees that condo owners need to pay that aren’t applicable to most single detached properties. Part-ownership of common elements is another unique feature of owning a condo unit.

But condo insurance is yet another aspect that differs from that of freehold properties. While both types of properties require insurance, condo needs are different. This is because condos are covered by the community’s master insurance policy for specific elements, as well as individual condo homeowner insurance.

But what’s covered under one policy isn’t necessarily covered under another.

Here are 4 things you should know about your HOA’s master insurance policy so you understand exactly how you and your belongings are protected.

1. Two Types of Master Insurance Policies Exist

Your HOA’s insurance policy falls under two broad categories: “all-in” and “bare walls-in.”

All-in – A lot more is covered through “all-in” insurance policies compared to bare walls-in coverage for condo owners. For example, if the walls in your condo are damaged by fire, your HOA community’s all-in insurance policy would cover many interior elements, such as fixtures, improvements and additions to the interior surfaces of the walls, ceilings, and floors. Under an all-in insurance master policy, you’d really only need limited coverage with individual homeowners insurance.

Bare walls-in – This type of condo insurance master policy covers all of the condo property from the exterior framing inward. But it doesn’t offer the individual unit owners as much coverage as an all-in master policy. Any damage to walls, floors and ceiling in individual units couldn’t be covered in the event of a fire, for example. Essentially, you’d require more coverage under your individual homeowners insurance policy in order to make sure your unit’s interior surfaces are covered.

Variations of both types of master policies exist, which should be detailed in the condominium association bylaws.

2. Your Individual Policy’s Coverage Will Depend on the Master Policy in Your Condo

Anything that exists within the confines of your individual unit is your responsibility. But depending on what type of master policy your HOA has in place, you may want to carefully consider the type of coverage that you get (and pay for).

The type of coverage you opt for can vary. But generally speaking, the following coverage options are available to offer protection on certain things that your HOA insurance might not:

Personal items – If any of your belongings are damaged or stolen, condo insurance can cover the replacement cost value (less depreciation).

Interior structure – Did you know that the actual flooring, drywall and fixtures are yours? As such, they’re your responsibility to protect under insurance if your HOA’s bare-walls in policy won’t.

Liability – If you have guests over and they’re injured during their visit, condo insurance may help cover the expenses if you’re deemed responsible.

Loss assessment – If your condo association determines that you’re responsible for any losses to the HOA – such as damage to one of the common elements – loss assessment coverage can protect you financially.

Loss of use – If your unit is damaged to the point that it becomes uninhabitable, your individual condo insurance policy may cover the costs associated with rental expenses while your place is repaired and brought back up to par. 

Identity theft – This is becoming a huge problem in the US. If your unit has been broken into and personal documents such as passports, credit cards and driver’s licenses are stolen, identity thieves can have a field day. This coverage comes with a minimal cost, but can be extremely helpful.

3. Should You Opt For Cash-value or Replacement-Cost Coverage?

After you’ve determined the right amount of coverage, you’ll need to choose your coverage based on two basic categories: cash value and replacement cost. The difference between the two could mean hundreds if not thousands of dollars, which is why it’s critical to choose wisely.

Cash-value coverage – Only the value of the insured item less depreciation will be replaced with the cash-value option. Any item you buy will immediately start to lose its value the moment you walk out of the store. A 5-year-old television isn’t going to be worth as much as it did when it was first purchased, for instance. The insurance company would need to check out what that same (or similar) television could cost today, then deduct any depreciation.

Replacement-cost coverage – Unlike cash-value coverage, depreciation isn’t used to calculate how much you’d get back after the loss of your contents, such as a television. Instead, you would receive a check for the amount what it would cost to replace your old television with a new one on the market today.

4. Association Insurance Policy Deductibles Are Paid By All Owners

Much like your own personal insurance policy requires a deductible to be paid should you file a claim, your HOA’s master policy requires the same. But the amount of this deductible can vary greatly, and is ultimately paid for as a group by all condo owners in the building.

Whether the condo community’s building was damaged by fire, wind, or natural disaster, the association would file a claim against the master insurance policy. The deductible amount would be spread out among all condo owners to be paid. So, if there are 50 unit owners in a building, and the master policy comes attached with a $5,000 deductible, each owner would be responsible to pay $100 towards this cost.

You need insurance for your condo, much like you would for any other type of real estate. But because of its unique traits, the type of individual coverage you get for a condo requires some careful consideration. Take the time to understand your particular HOA’s policy and coverage to make sure the policy you buy offers adequate coverage.

After the financial crisis hit the US back in 2008, FHA loans suddenly became pretty popular among borrowers who found it tough to secure a conventional mortgage. Before that, FHA loans were typically an option reserved mainly for low-income homebuyers.

Fast forward eight years later, and FHA loans are still a popular option for homebuyers who might struggle to get approved for a conventional mortgage. Thanks to their lower down payment requirements and softer lending criteria, FHA loans often make an attractive alternative for many borrowers.

Here are a few things you should know about these types of loans if you’re considering one.

1. An FHA-Approved Lender is Required

Don’t let the name fool you – the FHA itself doesn’t actually provide loans directly to borrowers. Instead, these loans need to be funneled through an FHA-approved lender. The FHA insures these loans and backs up lenders who provide them to qualified borrowers. That means the FHA will reimburse the mortgage company for its losses should the borrower default on payments.

In exchange for this insurance, borrowers are charged both an upfront fee and a yearly premium. This added protection gives FHA-approved lenders the ability and peace of mind to offer financing to borrowers who might not necessarily qualify for a typical home loan.

2. Mortgage Insurance Can Make FHA Loans More Expensive Than Conventional Ones

Speaking of insurance, it’s this feature that tends to make up the biggest cost for FHA loans. While the interest rates are often lower than conventional rates through Freddie Mac and Fannie Mae, mortgage insurance can make FHA loans more expensive.

As stated above, FHA mortgage insurance premiums (MIP) insure your loan in the case of default. It’s these premiums that allow the FHA to continue to keep this program available to homeowners without dinging the taxpayer.

FHA mortgage insurance premiums are paid in two parts. The first, referred to as “Upfront MIP,” is paid out at closing. This amount is automatically added to the mortgage balance by the FHA and is equal to 1.75% of the amount of your loan.

Your yearly mortgage insurance premiums, on the other hand, are paid out on a monthly basis. The cost of these annual MIP payments range depending on your location, and can be as high as 1.10% in more expensive areas of the country like New York City or San Francisco. On average, however, MIP is usually somewhere between 0.45% and 0.85% per year. The exact cost will also be based on how much is being borrowed, the length of the loan, and the loan-to-value ratio (LTV).

3. Minimum Down Payment is 3.5%

You’re probably already aware of the fact that FHA loans don’t require massive down payments in order to get approved for one. That’s probably one of the big traits that may have lured you to FHA loans in the first place.

What you may not know is that there is a minimum down payment, albeit a pretty small one. For the majority of borrowers, a minimum of 3.5% of the purchase price of a property is required by the FHA. That’s a very appealing feature of these loans when you factor in how expensive a home purchase can be.

4. Your Down Payment Will Determine the Credit Score Needed For Loan Approval

While FHA loans attract borrowers who don’t have excellent credit or a large amount of liquid cash to put towards a down payment, there is a caveat. The minimum credit score needed to be approved for an FHA mortgage depends on the type of loan that’s required by the borrower. In order to take advantage of a 3.5% down payment, your credit score needs to be 580 or higher.

If your score is between 500 and 579, you’ll need to come up with at least a 10% down payment. Make sure you know your credit score before applying for an FHA loan so you don’t come across any unpleasant surprises.

5. Closing Expenses May Be Covered

When buying a home, plenty of closing costs can creep up on the sale and really put a dent in the wallet. Appraisals, lawyer fees, title expenses, credit reports, and other closing costs can add up, but many times the FHA will allow such costs to be covered by sellers, lenders, and home builders. Oftentimes these costs are offered as an incentive for the buyer to purchase a certain property.

As great as this sounds, there’s a catch: lenders may charge a higher interest rate on the FHA loan if they pay for closing costs. Before agreeing to such an arrangement, it’s a good idea to compare loan estimates to determine which option makes more economic sense.

6. Costs of Certain Repairs Can Be Built Into the Loan

If the home you plan on buying needs a little TLC, you might be able to access the extra cash needed to bring the home up to par. The FHA has a product called an FHA 203(k) loan which helps cover the costs associated with repairs and renovations. This specialized loan product is built into the mortgage, so you end up paying for the repair costs little by little rather than all in one shot. This can be extremely helpful if you can’t scrape together a lump sum of money to pay for the renovations.

As if this wasn’t beneficial enough, the loan amount is based on the forecasted value of the home after the repairs are done, rather the current appraised value.

Getting a mortgage can be tough if your financial ducks aren’t all in a row. FHA loans can be a great option if you find yourself struggling to scrounge a decent amount of cash for a down payment, or if your credit score is barely scratching the surface of what’s considered stellar. But there are also other expenses that come with these government-backed loans; namely, mortgage insurance. Make sure you have an in-depth chat with your mortgage specialist to determine whether or not taking the FHA loan route is best for you.

Every 15 seconds, a home is broken into and burglarized in the US. Thieves spend hours scoping out targets, and once they zero in on them, it takes less than 60 seconds to break in.

Locking the doors when you’re not home is only scratching the surface when it comes to keeping your home impermeable to intruders. These thieves are smart, and have an arsenal of tricks up their sleeves when it comes to pinpointing which house on the block is easiest to break into, and has the pricey goods to steal.

Here are 6 things burglars don’t want you to know.

1. Shrubbery Makes For Great Coverage

Outdoor landscaping is an excellent way to boost curb appeal and enhance the esthetics of your home’s exterior. But all those shrubs that you meticulously maintain on the weekends could be doing a lot more than just making your home look pretty.

This greenery also does double-duty by acting as coverage for ne’er do wells who are looking to make their way into your home without being spotted by passersby in the meantime. When you’re planting shrubs and hedges, make sure they’re positioned far enough away from your windows so they don’t give burglars the opportunity to crack the windows open and slip in without being spotted. And make sure they’re trimmed low too so that as much of the windows are exposed as possible.

2. Big Boxes From New Electronics Are a Tip-Off

Any big-ticket electronics or appliances typically come encased in cardboard boxes. And after you’ve taken your prized possessions out and set them up in your home, you’ve got to discard these boxes somehow.

Most likely you’ll be leaving them at the bottom of your driveway come garbage/recycling day, which is exactly what burglars are watching for. Rather than blatantly announcing to the world that you just bought a new flat-screen TV, make sure you cut the cardboard boxes up into small pieces and stack them in such a way as to hide the labels that show what came in the box. Or else, consider storing the cut-up sections inside a bin until the morning of recycling pick-up.

3. Service Technicians Might Be Doing More Than Repairs

Whether you need to call a plumber to clear a clogged drain, or an electrician to revamp your electrical panel, letting a complete stranger in your house is always a gamble. While most service technicians coming into your home are honest workers who are there simply to rectify whatever issue you have, you just never know when one of them has an ulterior motive.

Some burglars use jobs like these as a means to go into other people’s homes to scope out the goods inside, as well as the best ways to get in when you’re not home. They’ll even go so far as to unlock windows while in the bathroom to make their break-in that much more convenient.

4. Mirrors Reflect a Lot More Than Your Image

Hanging mirrors in the entrance of homes is a pretty common design practice, and for good reason. It’s helps enlarge an often tight space and brightens the area up while providing a decorative element to the entryway. But while mirrors are attractive and all, they can also be a burglar’s ally. If your home has an alarm system installed, that mirror that you use to check your makeup on the way out for work will also reflect the alarm pad.

And if you forgot to set the alarm system before leaving your home, thieves will see that. And even if it is set, they’ll know that your home has an alarm system and may be crafty enough to disarm it by finding and cutting the telephone wire that it’s hooked up to. If you’ve got a mirror in your entryway, make sure the alarm system pad doesn’t show from the outside.

5. Those Door Hangers Might Not Be From the Local Real Estate Agent or Cleaning Company

Local professionals regularly advertise their services to homeowners via paper advertisement, whether they’re flyers, mail, or door hangers. But savvy thieves often use the door-hanger tactic to see how long it takes before this piece of paper is removed from the handle.

If it sits there for a few days, odds are the homeowners are away on holidays, which means it’s prime time to break in and help themselves to your belongings. If you happen to be away for more than a couple of days, ask your neighbor or a friend to clear these door hangers – as well as newspapers and your mail – while you’re gone to thwart off thieves.

6. Facebook is a Treasure Trove For Holiday-Goer’s

When you’re on vacation, you’re probably dying to show pictures of the glorious beaches or amazing landmarks you’re experiencing. But instead of waiting until you come home to do this, you’re likely plastering these images all over your Facebook page and Instagram account, just like millions of Americans do all the time.

But in addition to your friends scoping out your pics, burglars are doing the same. Mention that you’re out of town for however long, and these invaders will target your home, knowing that they’ve got plenty of time to ransack the place before you get back. Do yourself a favor and wait until the holidays are over before bragging to the world about your amazing vacation.

The Bottom Line

Burglars these days are always upping their game when it comes to breaking into homes and making off with valuables. That means you’ve got to keep up with their game in order to protect your home and its belongings. With an estimated $4.7 billion in property losses annually according to FBI stats, it’s well worth the effort to go beyond simply locking your doors and putting in an alarm system. In essence, think like a thief in order to impede on their efforts.

You’ve found the perfect home, put in an offer, and the seller accepted. Congrats! But the deal isn’t quite done yet.

There’s this little thing called ‘escrow’, and it involves a bunch of contingencies that need to be met before you get the keys to your new home.

So, what exactly is ‘escrow’, and what’s involved in the process?

Mortgage Financing

After the offer on the home has been mutually accepted by both you and the seller, and all the terms and conditions of the contract have been agreed upon, the escrow process can start. And one of the more pertinent steps during escrow is for you to secure mortgage financing.

If you were pro-active, you would have already gotten a pre-approval letter from your lender before you even started looking for a home. While a pre-approval doesn’t exactly guarantee that you’ll be approved at the time that your offer on a home is accepted, at least it gets the ball rolling and keeps your lender briefed on your home-buying intentions.

After you’ve given the mortgage lender the address of the property that you’ve accepted to purchase, a statement will be prepared that details your loan amount, interest rate, and any other costs involved. Should the lender approve a loan and provide you with written proof, you can remove the financing clause on the contract and continue on with the escrow process.

Property Insurance

Your lender will want to see proof that your home can be insured, and that the insurance process has already begun before a mortgage can be secured. You’ll need to get in touch with an insurance agent and discuss the type and amount of insurance that your specific property will need.

Lender Appraisal

The lender who is providing your mortgage will want to have the property appraised to make sure it’s actually worth what you agreed to pay for it. Lenders want to make sure their financial interests are protected at all times, and aren’t in the business of lending huge sums of money for properties that are worth a lot less than what buyers agree to pay for of them.

If the appraisal comes in at a price that’s lower than your offer price, mortgage financing will likely be declined, unless you can come up with more money to put towards the downpayment, or if the seller agrees to shave a few bucks off the price to match the appraised value.

Home Inspection

A home inspection should always be part of a purchase agreement, with very few exceptions. While the contract is in escrow, a licensed home inspector will check out the integrity of the property’s structure and finishes. Any problems that are identified will be itemized on a report, along with any suggestions on how to rectify them and the cost associated with doing so.

If any issues are identified, you have the option to renegotiate the price in order to cover the costs of making any repairs, or ask that the seller make the repairs prior to you taking possession. Of course, the seller can always decline, at which point you have the option to either go ahead with the sale anyway, or back out as a result of the home inspection not being satisfactory to you.

HOA Document Review

If you’ve purchased a property in a homeowner’s association, then the HOA documents will need to be reviewed by your lawyer. You could do it yourself, but these documents are lengthy and complex, so you’re better off leaving it to an attorney to review on your behalf.

Analyzing these documents will help identify if there are any potential problems with the HOA, such as pending lawsuits, limited reserve funds, problems with the building, and so on. If you’re not satisfied with what the HOA documents reveal, you can back out of the deal before final closing.

HUD-1 Settlement Sheet

As the closing date approaches, a HUD-1 Settlement Sheet will be prepares which lists all the debits and credits for the buyer and seller. For instance, if the seller owes any back taxes on the property, they’ll be considered as a debit to the seller, and listed on the HUD-1 sheet as such.

Final Walk-Through

If you’ve included a contingency in your contract that allows you a final inspection a couple of days before closing, then you have the opportunity to go back and make sure everything is the way it was when you agreed to buy the property.

The Bottom Line

As you can see, there’s a lot that goes on in escrow, which is why it can often take a while to complete before final closing. But don’t get too concerned about the complexities involved, since your real estate agent will be there to oversee the whole process.