How to Buy a House When You're Afraid of Commitment: A Gen Z Guide

Let's get real, Gen Z is an enigma. They'll spend an entire paycheck on concert tickets and still have their parents pay for their Netflix, but they also want to own a home. The twist - they want to own a home but without the "forever" part. 

So, for all you TikTok-loving, avocado toast-eating, future homeowners, here's the lowdown on how you can get your dream house without feeling like you've signed your life away.

Because Who Wants to Be Tied Down?

According to a study, 45% of Gen Z wants to buy a home in the next five years. The key, however, is flexibility. They want the financial security of owning a home without the commitment of, you know, actually living in it for the rest of their life.

This is where the heroes of the financial world—the independent mortgage brokers—swoop in. They're like your cool older cousin who knows all the secret hacks. They have access to all sorts of programs and loans designed for the commitment-averse generation. Here are a few that can help you jump into homeownership without sacrificing your freedom.

1. The "Why Pay More?" Plan: Rate Buydowns

You've probably heard of a rate buydown. It's essentially paying a lump sum upfront to get a lower interest rate, which in turn lowers your monthly payment. Think of it as prepaying for your home's Netflix subscription so you can save a little money each month. It’s a great way to make sure you can still afford those concert tickets even after you've bought a house.  Note: this option only really works when you plan to own the home for 5yrs+.

2. The "Let's Get a Trial Period" Mortgage: Adjustable-Rate Mortgages (ARMs)

An ARM is the perfect loan for anyone with commitment issues. It's like a long-term relationship with an escape clause. You get a fixed interest rate for a few years (five, seven, or ten) and then it changes. If you plan to move, refinance, or get a big promotion and finally pay off those student loans, this is your ticket to freedom. You get a lower rate to start, and if you play your cards right, you'll be out before things get too serious. Careful: ARMs sound great but the uncertainty of interest rate changes can have a big impact on monthly mortgage payments.

3. The "We Don't Need All That Cash" Loans: Low Down Payment and Down Payment Assistance

Gone are the days when you needed a mountain of cash to buy a home. Now you can get a loan for as little as 1% down. It’s like a buy-one-get-99%-off sale.

Here are a few options, all with varying levels of commitment:

• Fannie Mae and Freddie Mac Conventional Loans: The classic option. They only require 3-5% down. That’s a few months' worth of takeout, easy

• FHA Loans: A little more flexible at 3.5% down

• VA and USDA Loans: For those who really don’t want to put any money down, there’s the 0% option for veterans and those who want to live in the middle of nowhere

On top of that, there are over 2,500 programs to help you get started. It’s like a real-life cheat code to homeownership.

So, You Don't Have to Settle Down Forever

The biggest fear is that you'll buy a home today that won't fit your life in a few years. But with these loans, you're not getting married to the house. You're just... dating it. By keeping more cash in your pocket and a lower monthly payment, you’re free to make big life changes without the financial baggage.  But be realistic and understand that with lower down payments, your monthly payment will be more than if you put 20% down.

The bottom line? You can buy your first home and start building equity without settling down for good. So go ahead, start scrolling Anthem-NC.com. Your forever-ish home awaits.