Down Payment Tips for Gen Z

Down Payment Tips for Gen Z

Are you a Gen Zer unsure about your financial responsibility when it comes to buying a home? Are you worried about if you have enough saved for your down payment? Buying a home doesn’t have to be an overwhelming process or a financial drain. How should you prepare?

1. Down Payments

Down payments seem to be the biggest obstacle first-time homebuyers think they will face when buying a home. According to Freddie Mac, 60 percent of adults ages 18 to early 20s don’t know and overestimate how much they will need to put down on a home. However, according to NAR (National Association of Realtors), the actual down payment median for first-time homebuyers was 7% in 2019.

2. 20 Percent Down Myth

Because millennials still hold on to the “20 percent down” myth, it’s no surprise Gen Z are following suit. 60% of Gen Zers want to hold off on buying until they have enough down payment and can manage a mortgage payment, but first-time home buying comes with perks, including low down payment options.

3. Homebuying can be within reach despite challenges

With financial education at home, a strong economy, and a job market, home buying is an attainable goal for Gen Zers. Being optimistic about their financial futures, many prefer to own verse rent and want to purchase a home by the age of 30.

A 2019 Freddie Mac study showed low down payment options shrink the time it takes “mortgage ready” young millennials to achieve homeownership. With this information, we can assume it applies to Gen Z adults. Bottom line, low down payment options can give a much more motivating time frame of 3 to 5 years instead of 15 to 20 years to get into your first home.

Are you ready to take that next step into homeownership? Let one of our loan officers walk you through the process, contact us today!

Source: https://sf.freddiemac.com/articles/insights/four-reasons-lenders-should-begin-educating-gen-z-about-down-payments-now?utm_source=eloqua&utm_medium=email&utm_campaign=2020-02-13_LN_NEWSLTTR_

Related Posts

What Are Construction and Renovation Loans?
What Are Construction and Renovation Loans?

When most people think about mortgage loans, they think of the standard, long-term financial commitment to purchase a home. But did you know there are mortgages available specifically for building or renovating a home too? Keep reading to learn exactly how you can benefit from a construction or renovation loan. Construction Loans Construction loans are […]

September 08, 2021
Full Post
Using a Mortgage Calculator to Understand Your Home Loan Options
Using a Mortgage Calculator to Understand Your Home Loan Options

When considering buying a home or refinancing your current mortgage, it can be hard to know where to start and how to tell what the right decision is. While talking to a mortgage lender is always going to be your best bet for truly figuring out how much your home loan may be or if […]

September 01, 2021
Full Post
5 Common Home Buying Mistakes
5 Common Home Buying Mistakes

Whether you’re a first-time home buyer or seasoned house hunter, there are some commonly made mistakes you should know to avoid. Not Determining How Much House You Can Afford You should know how much your budget is before you start looking for houses. This will help you avoid wasting time looking at homes outside your […]

August 11, 2021
Full Post

Connect With Us