This One Move Could Help Gen Z Buyers Lower Their Monthly Mortgage Payments in 2026
A 2026 study by LendingTree found that 78% of Gen Z homeowners got help covering their down payments.
That one move helped them borrow less mortgage debt, lowering their monthly payments. It also made it so that they had to come up with less cash at the closing table.
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That’s great for them — but how can you do the same? What are your options for down payment help as you hunt for your first home?
Family and Friends
Gen Z homeowners got the bulk of their help from friends and family.
Fully 27% of Gen Z homeowners received help from their parents. Another 27% got down payment help from other family or friends and another 24% partially funded their down payment through an inheritance or trust fund.
While most loan programs technically require the help to be a gift (not a loan), perhaps you could offer to repay your family and friends in other ways. Lawn care, babysitting, petsitting; get creative with it and see what you can work out with your loved ones.
Employer Assistance
A surprising number of employers include down payment assistance as a little-known benefit, according to Blaz Korosec of real estate firm Investorade.
“Roughly 1 in 8 Americans have access to an employer-assisted housing voucher, so double check with your HR department. These average $10,000, so it’s not chump change.”
Help From Nonprofits
Many nonprofit organizations around the country offer programs for local first-time homebuyers.
“In Texas for example, buyers have access to two distinct programs through TSAHC and TDHCA that can even be stacked with city-level programs such as the Dallas Homebuyer Assistance Program,” Korosec added.
Many of these programs limit access based on your income relative to area median income or limit the purchase price or both.
Other programs service specific types of people. Kristina Morales of Loanfully pointed to several examples.
“State-run Hometown Heroes programs also offer down payment assistance to teachers, law enforcement and emergency responders. Most states offer new college grads funding for down payments (or have a sliding scale that allows eventual forgiveness of the down payment) as part of the Grants for Grads programs,” Morales said.
Do some research on what’s available in your state and city and what you might qualify for based on your personal circumstances.
Negotiate Seller Help
The seller can also provide some extra cash for you. While typically negotiated as “concessions to cover closing costs,” every dollar you don’t have to put toward closing is another dollar for your down payment — and one less you have to borrow in your mortgage.
Word to the wise: The longer a home listing has sat on the market, the more willing the seller often is to negotiate a concession.
Forgivable Second Mortgages
Some programs offer a second mortgage to cover part of the purchase, then forgive the loan if you meet certain criteria.
Mason Whitehead of Churchill Mortgage noted that most programs only allow first-time homebuyers, but not all.
“A lot of lenders also have internal down payment assistance programs, including Churchill Mortgage. After a certain time period, usually three years, the down payment assistance grant is forgiven. If you were to refinance or sell the property before that time horizon, you would be responsible for paying back the grant.”
All of these strategies can help you fund your home purchase with other people’s money. But if you want to actually lower your monthly mortgage payments, don’t just raise your price range to account for the extra help. Keep your price range affordable and actually use the help to lower your mortgage debt from Day One of homeownership.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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