Solution To Millennials Challenged With First Time Home Buying Due To Overwhelming Student Loans

The Problem!

Over leveraged millennials are in a financial straight jacket!!

It’s not the money it’s the “Money

Today any casual reading of the financial press complains about the delaying impact of student loan debt, headaches around first time home purchases, inability to qualify for traditional funding, etc.

The National Association of REALTORS® (NAR) claim that 83% of millennials are delaying their home-buying plans by a median seven years as a result of their student loan debt. See the report here:

Over the 40 years that I have been in the financial business, I have seen both sides of the coin when it comes to younger generations (millennials) obtaining finances for their first home. On one side of the coin I have seen those struggling to qualify for loans due to high debt to income ratio, lack of savings and strict financial intermediary regulatory, credit and document requirements on first time home purchases, education, marriage, starting a new business, career changes etc.   On the other hand, I have seen families take out money from trust, inheritance and other family funds and lend the money to their children at an agreed upon rate giving them a leg up and great head start on their future.“, states LoanKin Founder, Emile Coulon.

This leads us to the solution.

The Solution 

While these problems are not new and have historically been resolved by the generosity and trust of family and friends through transfers of wealth in the form of loans, rather than gifts.

Family assistance has given many millennials with limited work history a way to not get buried in debt before they can make a way for themselves.  This advantage helps them not only have a roof over their heads that is not their parent’s house, but it also helps them not make hasty decisions in life that are influenced by the influence of overwhelming bills.