More millennial's are expected to purchase their very first home within the next five years thanks to a recovering job market and new loan programs which makes home buying a lot more affordable.

First let's take a look at some of the reasons that are in the way of young adults buying a home. Student loan debt is a major drawback for many millennials. Research shows that those with a high amount of student debt are less likely to consider home buying a viable option. In addition, there high income to debt ratio makes it very hard to qualify. The large down payment of 20% is another obstacle. Many are just fresh out of college and haven't had the time or opportunity yet to establish themselves in their careers and earn a high income yet.

One of the main advantages that millennials do have is that they are more educated than any other generation. One third of all millennials have obtained a bachelor's degree and with the job market slowly stabilizing that means more opportunity to earn high salaries and buy homes. More than house of millennials have attended college for some period of time.

Millennial's will also be able to take advantage of new programs which will enable them to put just 3% down. These programs include ones instituted by Fannie Mae and Freddie Mac as well as FHA loans which are available at Best Rate USA Home Loans. The disadvantage of these programs is that many do require the borrower to purchase private mortgage insurance costs which can be added to the total loan amount. This extra cost is required in order to protect the lender in case of a default.

Some experts disagree and may feel that hom eownership rates will stay low for millennials due to less importance being put on marriage and having kids. As a result some may postpone building a family or even choose not to have one all. Only time will tell if millennials will truly take over the market but with their high levels of education and income potential they will be in a favorable position to purchase if they choose to do so.