Months from graduation, John Ryan was uncertain of his future living arrangements until he saw an item in the York College senior bulletin. York was offering recent alumni $6,000 to help buy a home near the Pennsylvania college.
Ryan signed up for the program, graduated in December and moved into his two-bedroom house last month. With the grant and $4,000 from a city program, Ryan was able to afford his $45,000 home.
"I'm making out like a bandit right now," said Ryan, 22, a security guard at York Hospital. "With the assistance, my mortgage isn't really that high."
Richard Thomas, 25, is looking for similar help. A senior at Morgan State University, Thomas is shopping for a home in Baltimore that he can buy after graduation.
Thomas is one of hundreds of seniors whom the Congressional Black Caucus Foundation is targeting for its Student Homeownership Opportunity Program. The foundation - which raised money for the program through private donations - is offering $1,000 toward closing costs on a home bought during the next two years by this year's graduates of historically black colleges.
Census numbers show homeownership by the young is growing rapidly nationwide as the lowest interest rates in more than 40 years cause more buyers to consider building home equity earlier in life.
Increasingly, homebuying programs are targeting college students and soon-to-be graduates, a population largely ignored by the housing industry because of its mobility, scant job history and debt burdens.
Some experts doubt whether these programs can work, contending that college students can do better by renting first and paying off credit-card debt and student loans. But advocates say they are trying to educate college students early about managing money, establishing credit, building wealth through homeownership and contributing to neighborhood development.
"People should get started in homeownership as early as possible," said Gary Eldred, author of The Beginner's Guide to Real Estate Investing and other homebuying books. "As soon as they get their first job and know where they're living, it's a great time to get started."
According to Census data, 22.8 percent of Americans younger than 25 owned homes last year. Ten years ago, about 15 percent of that group were homeowners.
Eldred said recent graduates increasingly are sought after by mortgage lenders for homeownership because their parents can offer financial support and they usually have several job prospects.
