The prospect of becoming a homeowner is a daunting one for many potential buyers, and the Millennial generation in particular is shying away from the concept.

In addition to a crushing student debt burden, Millennials in Massachusetts face the shadow of a large down payment and battle a lack of inventory, but one of the biggest challenges they face is a financial education that could help them buy a home affordably.

“Millennials feel that a home is cost-prohibitive at their age,” said Peter Milewski, director of homeownership and lending at MassHousing. “The sweet spot for first-time homebuyers is from ages 21 to 35.”

But they won’t be waiting much longer: 68 percent of first-time homebuyers are below the age of 34, according to National Association of Realtors’ “Home Buyer and Seller Trends Report 2015.” TD Bank’s survey, “First-Time Home Buyer Pulse,” found that 46 percent of Millennials will be looking to buy their first home in the next one to two years.

Brenda Clement, executive director at the Citizen’s Housing and Planning Association (CHAPA), said that the economic crash in 2008 changed the landscape of finance for homebuyers and had a major impact on the economic status of all Millennials. The Millennials themselves agree: TD Bank’s survey found that the two most observed roadblocks for Millennial first-time homebuyers were saving the money for a down payment and needing to pay down debt before a purchase.

Not to pile on, but there are just not enough houses, particularly in Greater Boston, that fit the requirements and budgets of Millennial first-time-homebuyers.

“There’s a lack of inventory in most desirable locations in Massachusetts, so it’s hard for Millennials to find a house near jobs that fits their needs,” Milewski said. “That’s why they are willing to live with less square footage; condos are Millennial-designed properties that seem more compact and efficient than an investment in a home.”

It’s also “a big, scary step for most folks to own a home, but it creates economic stability most Millennials don’t currently have,” Clement said. “We need to figure out how we can increase the amount, and types, of housing options to meet both the needs and demands of the future Millennial market.”

The 20 Percent Myth And The Burden Of PMI

“For whatever reason, there’s this misconception that you have to have a 20 percent down payment, when really, the industry standard is 3 percent as a minimum down payment,” said Amy Slotnick, president of Fairway Independent Mortgage.

A Wells Fargo’s survey showed that 44 percent of first-time homebuyers believe that a 20 percent down payment is required, and another 44 percent know little or nothing about the closing costs required for a home purchase.

In some of those popular 3 percent down payment programs, Slotnick said that there are income restrictions that may help some Millennials who haven’t yet reached their earning potential. But there’s a catch, she added: “The less you pay in down payment, the higher the mortgage insurance.”

“People have this negative view of mortgage insurance, like it’s a penalty … it actually opens up a product that otherwise wouldn’t be available,” Slotnick said. Millennials – in fact all first-time buyers – should see it as a tool for lower down payment instead of a punishment, she said.

Overall, the biggest challenge for Millennials is coming up with the down payment, said Ray Rodriguez, regional mortgage sales manager at TD Bank. “Let’s face it: we all want more than we can afford, but Millennials need to be realistic,” he said. “The national average home price is going up every year, and this year alone it’s already gone up by 6.5 percent.”

Assistance Is Available

“There’s a huge and understated lack of awareness of programs that can help people … out of 100 people, 90 wouldn’t know about them,” said Rob Chrane, CEO of DownPayment Resource, an Atlanta-based company that connects potential buyers with assistance programs and recently partnered with the Massachusetts Association of Realtors.

Then, of course, there is the famed Millennial trust in and reliance on the wisdom of the Internet. Of all first-time Millennial buyers, 44 percent started the purchasing process online, according to a report from NAR. While 17 percent searched online for information on the home-buying process, only 8 percent contacted a mortgage lender or bank to get the information first-hand.

The Internet can only take buyers so far; they need the whole picture, and talking to a trusted mortgage expert or agent is one of the best ways to complete their research. Despite attempts by the industry to convince them of that, many buyers are still reluctant to attend the free, local classes that banks, lenders and real estate offices host annually.

“Millennials seem to want the housing process in 140 characters or less,” Milewski said. “Because of how socially active they are with technology, Millennials think all the information on purchasing a home is easily accessed without going to a class or seminar in person.”

But he believes that there is a way for Millennials to overcome the financial barriers that prevent them from buying their first home and to become educated, prepared buyers.

“There are possible creative solutions … I think people just have to think outside the box,” he said. “We’ve seen employers help refinance student debt for them, giving the potential Millennial employee a reduced salary and a loan that would be forgiven over a period of years.”

Milewski said if employers start to invest in their Millennial employees, Millennials would feel more comfortable buying a home and would be more financially secure because of it. He encourages employers to support the financial education of their recent college graduate employees.

“There are creative and innovative ways that open-minded and freethinking employers can help move things along,” Milewski said.

Rodriguez said that education is the key to eliminating most of the financial and social barriers Millennials face before buying their first home.

“Knowledge is power, and you have to optimize that power,” he said. “Today’s Millennials are knowledgeable, with everything at their fingertips … just don’t stick to one resource; take advantage of that power.”