Many 20-somethings are understandably fearful about buying a home. After all, everyone seems to know someone who's had a house taken away through foreclosure. Yet despite that scary image, many young adults remain highly motivated to acquire properties of their own.

"As Americans, the desire for homeownership is practically written into our DNA. A house still represents a badge of success -- the trophy you get when you finally grow up," says Jim Blankenship, a veteran financial planner who's advised numerous young clients on their real estate plans.

At a time when mortgage rates are low and home prices are affordable, he says, an increasing number of young people are doing the math and are seeing homeownership as a viable alternative to renting. The steadily rising rents in many metropolitan areas add to their motivation.

"If you plan to stay in the same place for five to seven years, this could be a really good time to buy," says Blankenship, who's affiliated with the Garrett Planning Network, which represents fee-only planners throughout the country (www.garrettplanning.com).

However, as he notes, many young, wannabe homebuyers face financial hurdles. Student debt combined with stringent mortgage standards represent serious barriers that must be overcome. Thus, many 20-somethings must reposition their financial lives to reach homeownership.

"To afford a home and qualify for a mortgage, sacrifice is often necessary," Blankenship says.

Is homeownership your top financial priority? If so, you may wish to consider taking one or more of these steps:

-- Reduce your debts by generating extra income.

As the Federal Reserve reported recently, total consumer debt in America declined slightly in recent months. But student loan debt continues to soar, and now tops $900 billion.

For anyone seeking to make financial progress, cutting debt -- including credit card balances -- is an absolute must.

Unfortunately, many 20-somethings make only enough money to meet their current living costs. They're limited in their capacity to pay off debt or generate savings for a down payment. Given this reality, Blankenship recommends that young people consider augmenting their income.

"Think about taking a second job. Or try to get overtime at your regular job, assuming overtime is available," he says.

He urges clients who've accumulated too much debt to think positively about changing their financial habits rather than dwell on how they ran up so much debt in the past.

-- Give up plans for a big wedding in favor of money for a home.

Kristin Meador, a real estate broker who often works with young buyers, wrote a book designed to help clients save substantial amounts on their wedding costs. It's called "How to Have a Wedding Without Spending a Dime: Or at Least Very Little."

The book grew out of money-saving strategies Meador developed while helping relatives and friends stage their weddings. It provides pointers on how to cut costs for a range of wedding-related expenses -- from invitations to rings to the reception and honeymoon.

"When you're trying to save for a house, it makes no sense to spend $500 or more for a wedding dress," Meador says.

Her book itemizes a number of ways to hold an inexpensive yet tasteful wedding, including having the reception at a lovely local park or community center rather than a swank hotel.

"Buying a home has long-term benefits that last far beyond your wedding day," Meador says.

The expense of an average wedding now tops $25,000 --funds Meador believes would be better spent on a home, assuming the property is carefully selected.

"A lot of parents with money to help their grown kids would rather their funds go toward a home than a fancy wedding," she says.

-- Cut discretionary expenses.

Most 20-somethings who live in rental units are very sensitive to their monthly housing costs. But they're typically less aware of how much money they're spending to eat out at restaurants and on social activities, Blankenship says.

Young professionals may also spend what he calls "shocking sums" on clothes, as well as entertainment. He recommends that would-be homebuyers comb through a recent month's worth of spending to realize where they could cut back.

"I recommend you look closely at your cable bills to see if you really need all those movie channels. Also, look at that fitness club membership you never use and consider taking bag lunches to work," Blankenship says.

-- Sell a car and watch your savings grow.

A new or nearly new car is often the first major purchase for many young adults. And usually the purchase is financed with a hefty loan. But mortgage lenders often frown at the sight of a prospective homebuyer driving up in a late-model vehicle.

"Lenders know that a couple who's financing one or more cars will likely find it tougher to qualify for a home loan," Blankenship says.

Even if you drive an older vehicle and have no car loan, chances are you're paying a substantial amount for car insurance and repairs, not to mention gas.

Blankenship says it's a wise idea for young couples bent on homeownership to ponder the idea of selling one vehicle. Consider public transportation or carpooling as an alternative to commuting alone.

-- Don't rule out a temporary arrangement to share housing.

Moving in with family members for a year or so could help you cut living costs dramatically and save for a down payment.

Beyond family arrangements, another way to find a similar money-saving housing swap is to go through a co-housing service. You can locate such a service in your area through the National Shared Housing Resource Center (www.nationalsharedhousing.org).

Meador says she's worked with many young buyers who've built up substantial savings for a down payment through a housing-for-services swap.

"Shared housing was the ticket that ultimately let them reach the dream of owning their own place," she says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

Despite exceedingly low mortgage rates and more affordable property prices, some families seeking to buy a first home must scale back their expectations. That's because their household income has also declined due to lower salaries or reduced overtime at work.

"Nearly all homebuyers must make tradeoffs. But this is especially true for folks who need to stay within a tight budget due to economic conditions," says Merrill Ottwein, a real estate broker and former president of the National Association of Exclusive Buyer Agents (www.naeba.org).

He tells the true story of a cash-tight couple he recently helped to find a home. They wanted to live near the university where the wife -- who'd lost her higher-paid position at another college -- had just been offered a job teaching English. The husband worked from home as an IT specialist.

At the top of their original wish list, the couple cited their desire for a yard with at least half an acre of land where the man could plant a large vegetable garden. Plus they hoped for a spacious kitchen with granite countertops and solid maple cabinetry.

Early in their search, they fell in love with an English cottage with a dream kitchen that opened onto a screened porch. But the yard was only an eighth of an acre.

"They were really torn. For more than two weeks they debated whether to buy that cottage with the tiny yard. It took many conversations and visits back to the house before they decided to go for it," Ottwein says.

Sometimes buyers come to regret the trade-offs they made to get what they want for a lower price.

For example, some purchasers make the mistake of accepting a grueling commute from a distant suburb in exchange for the chance to own a much larger property than they could otherwise afford.

"From time to time we hear from buyers that they don't care how far they have to commute to get that huge house with every single feature on their wish list. Then they call us back a year or two later to complain that the long drive isn't worth it," Ottwein says.

"Any commute that takes more than 50 minutes is punishingly long," he says.

He urges homebuyers to think through their lifestyle preferences before narrowing the scope of their property search.

"At almost every phase of the property search you're confronted with trade-offs. Very few people get everything they want in a house," Ottwein says.

Here are a few pointers for homebuyers:

-- Consider your feelings about your current living quarters.

"First write down what you like and don't like about your present home. Then list all the features you absolutely must have, would like to have, or are willing to forgo in the new house," Ottwein says.

Suppose the townhouse where you now live has you feeling cramped because it lacks side windows. That could tell you that buying a detached house with large windows would be more important to you than a townhouse with extra living space.

"People with a strict cost ceiling should be doubly mindful about what's critical for them versus what they're willing to give up," Ottwein says.

-- Select features early when buying a brand-new home.

Those buying in a new subdivision face lots of trade-offs before the sales contract is even written.

"Most builders give you a lump sum allowance for all the basic options -- everything from kitchen cabinets to lighting fixtures, appliances and landscaping choices. Usually anything else you select costs extra," Ottwein says.

It's important to make as many selections as possible before you sign the builder's contract. For instance, if you want a sunroom, bargain for that additional feature to be included in the original contract.

"After your sales contract is signed, you lose your leverage with the builder. Because he knows you've already agreed to buy the house, anything you purchase later will cost a lot more," Ottwein says.

-- Don't trade off a fixed-rate mortgage to get more home for the money.

Keith Gumbinger, a vice president at HSH Associates (www.hsh.com), which tracks mortgage markets throughout the country, says some homebuyers are still drawn to adjustable-rate mortgages.

It's true that at the front end the monthly payment on one of these loans is lower than on a traditional fixed-rate mortgage for the same amount. But Gumbinger says the savings you enjoy during the early years are likely to be more than wiped out over the term of the loan.

"The always-present downside of taking an ARM is that interest rates will undoubtedly rise at some point in the future," says Gumbinger, noting that nearly all variable rate loans have at least one automatic upward adjustment built in during the early years of the term.

Moreover, taking an ARM now could mean years of discomfort not knowing if your rate will rise or fall.

"For the vast majority of buyers, knowing your rate can't double while you're still living in the house is comforting. They sleep better at night," Gumbinger says.

Some purchasers, particularly those who think they will move again soon, are drawn to what's known as a "hybrid ARM," which is typically guaranteed to stay level for a minimum of the first five years before it's subject to adjustments. Gumbinger thinks such a move risky, given the vicissitudes of life

"You need to have a lot of confidence that you'll definitely have a short tenure in the house to warrant taking an ARM of any kind," Gumbinger says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

As your kids grow up and move on to their adult lives, you realize you'll soon have a much larger house than you and your spouse need.

Do you sell the property and walk away from what you consider an idyllic suburban setting -- letting go of neighborhood friends and happy memories? And if you sell, what sort of place do you buy and how much do you spend?

These questions are extremely difficult for parents who've spent years absorbed in raising their offspring -- with very little thought to their own future housing plans, says Eric Tyson, author of "Personal Finance for Dummies" and several real estate books.

"It's tough to transplant yourself," says Tyson, a former financial adviser.

He says pre-retirement years are a good time for empty nesters to take stock of their housing needs and overall financial situation, though many people fail to seize that opportunity.

Cary Carbonaro, a financial planner since 1990, says it's rare for those in her profession to help clients assess their housing choices.

"Whether to sell your family home or stay is a very personal decision. As advisers, we can't tell clients what to do. But we can help them sort out the financial implications of their alternatives," says Carbonaro, who's affiliated with the National Association of Personal Financial Advisors.

Here are a few pointers for empty nesters:

-- Look at both the pros and cons of selling your present property.

As Carbonaro notes, some parents of grown children look forward to downscaling to a smaller place with fewer maintenance demands.

"The idea of a less complicated lifestyle can be appealing," she says.

Yet others yearn to take over their kids' old rooms in ways that would be enjoyable to them.

"They transform the extra bedrooms into hobby rooms, for crafts, exercise or home offices," she says.

Others count on hosting frequent family gatherings. But many will find the expense of keeping such a large house unjustified.

"Do you really want to pay for all that space, including your taxes and utility costs, just so you can entertain your kids for a week or two each year? Probably, it would be less expensive to put them up in a nearby hotel for those few days," Tyson says.

-- Ask for professional advice to help make a solid decision.

By going through a professional group, such as NAPFA (www.napfa.org), you should be able to locate a planner to hire for just the few hours it takes to talk through your housing options.

Another course that Tyson recommends involves seeking advice from a certified public accountant trained as a "personal financial specialist" (PFS). The American Institute of CPAs awards this designation. You can locate a PFS in your area by visiting the organization's website: www.aicpa.org.

-- Include retirement planning in your housing analysis.

If you lack funds for retirement but have substantial equity in your property, selling the big family home could open the way for investments that are potentially more lucrative.

Tyson says "many people romanticize about living somewhere cheaper and simpler." But he cautions there can be many hidden costs associated with selling one home and moving to a distant state to buy another smaller place.

"There are always financial trade-offs involved. Maybe you'll spend less to buy a house in the new area and your taxes will be lower. But remember there are likely to be many expenses to fix up your house for sale, to move and to buy the new place," he says.

Also, he recommends you factor in how living in a remote area -- away from a major airline hub -- might increase your travel costs and those of grown offspring who wish to visit.

-- Research your college financing options.

It's not an ideal time to reformulate your college financing plans after your children have already started classes or are about to do so. But Tyson says it's still not too late to try to make up for lost time.

Unfortunately, most people don't plan ahead for college financing, according to Tyson.

"They view college costs in isolation rather than as part of a holistic financial plan that integrates all the parts," he says.

Have you promised to contribute toward your children's college expenses with proceeds from the sale of your home? If so, Tyson cautions that doing this could put in jeopardy any need-based scholarship or grant money for which your offspring are eligible.

"While that equity is still in your house, many college financial aid offices won't expect you to tap it for tuition and fees. But if you sell the house and free up capital while your kids are in school, all that could change," he says.

Maybe you'll want to meet with financial aid officers at your children's colleges to discuss whether your kids might bear some of the expense through student loans or by enrolling in work-study programs.

"It sounds selfish, but as you approach retirement, you've got to think about yourself and your own financial needs going forward," Tyson says.

-- Give yourself ample time to make the right housing choices.

"Having your kids grow up and move away raises all sorts of emotional issues for a lot of people. So they avoid making hard choices about what to do next," Tyson says.

He advocates that empty nesters try to conceive their post-retirement housing plans at least five to 10 years before they stop working.

"Most people don't think very much about whether to stay or sell their big family house before taking action. But you need plenty of lead time and loads of information to make the right decisions," Tyson says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)