Generation Z – those born roughly between 1995 and 2010 – will soon be entering the home-buying phase of their lives.
Just like the millennials before them, they have their unique traits and preferences that are part of the way they were raised and the world around them. A new report is highlighting some of the ways in which they view homeownership.
There are some interesting statistics from the Bank of America Homebuyer Insights Report, chief among them is the fact that 59 percent of Get Zers that are between 18 and 23 years old hope to buy a home sometime within five years. Additionally, above 50 percent of them have already begun saving money.
The study, which was based on an online survey conducted in early 2019, also determined that 71 percent of Gen Zers already know what they would like in their home. Like most generations, this age group does see the down payment as a barrier, but interestingly, the Homebuyer Insights Report found that they view it as less of a roadblock than millennials, Generation X and Baby Boomers do.
For those Gen Zers, and anyone, who is concerned about the down payment in order to purchase a home, consider the following loan programs that don’t require as much down as you may think:
- FHA Home Loans – These loans can be a good fit for first-time buyers because they come with lower down payment options and the ability to use gift funds. The down payment can be as low as 3.5 percent*.
- VA Home Loans – These loans help Veterans, active duty and surviving spouses. There is the opportunity to land 100 percent financing*, to go along with a no mortgage insurance requirement. For first-time homebuyers, a VA Loan can also allow them to buy a fixer-upper and bundle the costs of repairs into the loan.
- USDA Loans – For those who would prefer to purchase real estate in a rural area, a USDA Loan could be the way to go. These loans offer 100 percent financing with zero down payment requirements*.
And if you fall into the Generation Z age range, it sounds like making sacrifices to save up for a larger down payment may be something you are OK with as well. The Homebuyer Insights Report also found that 94 percent of Gen Zers are willing to make sacrifices to generate the money to purchase a home, whether that be getting a second job, attending a college that will come with less student debt or moving in with their parents.
If you are thinking about purchasing real estate before you turn 30, then good for you! Owning a home can be a wise investment for your financial security moving forward. If you have any questions about how to get started, contact us today!
*Qualifying factors may apply. Example VA: Loan amount $300,000, 0% down, monthly payment without taxes and insurance $1,844.77 APR 4.432%