Gen Z wants to own homes, but without committing to a 'forever' financing plan. Here's how they can get both.

45% of Gen Z hopes to buy a home within five years, but want flexibility over a "forever home."
Independent mortgage brokers have access to a number of programs designed for financial agility and changing needs.
Products like ARMs, rate buydowns, low down payment loans, and down payment assistance programs can help make homeownership more attainable.

Gen Z wants to experience homeownership — and most see it as a key step toward building wealth and long-term financial security. In fact, 45% say they hope to buy a home within the next five years. But in today's economy, many younger buyers aren't necessarily looking for a "forever home." Instead, they're prioritizing flexibility over permanence.

As younger generations shift their priorities, local mortgage brokers across the country are stepping up with solutions that offer flexibility without financial compromise. New programs and loan options are giving Gen Z more control over their housing journey — and helping them protect their financial well-being.

United Wholesale Mortgage (UWM), the number one mortgage lender in the US, recently invested $100 million in Bilt, a company that rewards renters for paying their rent with Bilt. Now, UWM and Bilt are working toward expanding that model to mortgage payments, with plans to offer rewards through UWM's network of independent mortgage brokers. It's a move that could catch the attention of renters who've been on the fence about buying a home.

Here are three other solutions that can help young buyers take the leap into homeownership and maintain their financial agility.

1. Rate buydowns

Making the leap from renter to owner can sometimes strain a first-time homebuyer's budget. A rate buydown allows you to pay extra cash upfront to temporarily or permanently lower your interest rate (and typically your monthly payment). This can make it easier for new homeowners to afford their mortgage payments, especially during the first few years.

2. Adjustable-rate mortgages (ARMs)

ARMs offer a fixed interest rate for an initial period (typically lasting five, seven, or 10 years) followed by a variable rate that will change over time. The initial rate is usually lower than a traditional fixed-rate mortgage, making your monthly payments more affordable as you settle in. That's why an ARM can be a smart choice for buyers who plan to move, refinance, or anticipate a big improvement in their finances from a new job or paying off student loans.

3.Low down payment loans and down payment assistance

Certain loan programs allow buyers to put down as little as 1% and some do not require any down payment at all. Here are some examples of options available for eligible borrowers:

There are also more than 2,500 homeownership incentive programs available across the US, including options from state and local governments as well as nonprofit organizations. These can help cover down payments and closing costs, or offer low-interest loans. Some are designed specifically for first-time buyers, while others are available to buyers who meet certain income requirements.

Homeownership doesn't mean settling down forever

One common hesitation among young buyers is that what they buy today might not fit their lifestyle in a few years. Yes, circumstances change — families grow, jobs move, and personal preferences evolve — but flexible loan options can take some of that pressure off.

By spending less cash upfront or securing a lower monthly payment, buyers can maintain more financial wiggle room. That way, when the time comes, it's easier to refinance, relocate, or remodel to suit your next life phase.

The bottom line is you don't need a "forever" plan to buy your first home. With the right tools and support from a knowledgeable local mortgage expert, Gen Z buyers can start building equity today without sacrificing their freedom later.

Explore your options with the help of a local independent mortgage broker. Find one in your area at MortgageMatchup.com.

This post was created by Insider Studios with Mortgage Matchup.

*The principal, interest and MI payment on a $200,000 30-year Fixed-Rate Loan at 6.50% and 97% loan-to-value (LTV) is $1,324.14. The Annual Percentage Rate (APR) is 7.059% with estimated finance charges of $5,600. The principal and interest payments, which will continue for 360 months until paid in full, do not include taxes and home insurance premium, which will result in a higher actual monthly payment. Rates current as of 07/31/25. UWM pays the lesser of 2% or $7,000 of the down payment. Borrower pays 1% of the down payment (or remaining down payment needed if 2% exceeds $7,000). Subject to borrower approval. Some exclusions may apply.

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