So how did 10% of first-time homebuyers finance their purchase to come up with a down payment and get out of paying private mortgage insurance?
According to a Bankrate.com survey, they took money out of their retirement savings.
Millennials are more likely than Gen Xers to use their retirement savings and sell personal belongings to scrape up the money, the survey found.
“It’s troubling that people feel like they have to tap into their retirement savings,” said Deborah Kearns, mortgage analyst with Bankrate. ”They’re already not saving enough for retirement, and they’re compounding the problem by taking out a loan or not contributing to save for a down payment,” she said.