First-time buyers now account for 58% of agency purchase lending, and Gen Z makes up a growing 25% of those loans. But winning their business requires a fresh approach: digital-first experiences, alternative credit scoring, and tailored loan products. For mortgage lenders in Massachusetts and New Hampshire, this isn’t just theory — it’s survival. In this playbook, we’ll break down the strategies that resonate with today’s buyers and help you capture tomorrow’s market.

Why This Matters

The share of first-time buyers is shrinking overall, and the median age of a first-time buyer has risen to 38. Gen Z, though small in numbers (just 3% of all buyers), is punching above its weight by embracing FHA loans, family assistance, and affordable markets. Millennials, meanwhile, are stalling under the weight of rising home prices and stagnant incomes.

For lenders, the question isn’t if you should adapt to these buyers — it’s how quickly you can.

Offer FHA and Low Down Payment Options

Younger buyers are strapped with student loans and high living costs, making traditional 20% down payments unrealistic. FHA and other low down payment products have become lifelines. Highlight these programs in your outreach, and make sure your application process clearly explains requirements, insurance costs, and benefits.

Playbook Tip: Don’t just advertise “low down payment loans.” Provide easy-to-digest comparisons that show real monthly savings.

Embrace Digital-First Lending

Gen Z has grown up with apps, mobile banking, and online shopping. They expect the same ease when applying for a mortgage. That means:

• Online application portals that track progress in real time
• Virtual closings and e-signatures
• Mobile-friendly communication (texts > voicemails)

Playbook Tip: Invest in user experience. A clunky or outdated digital system is the fastest way to lose a young buyer’s trust.

Expand Credit Access with VantageScore 4.0

Traditional FICO models miss many younger buyers who have limited credit histories. The adoption of VantageScore 4.0 by Fannie and Freddie now allows rental, utility, and telecom payments to count toward creditworthiness.

Playbook Tip: Educate buyers on how their rent payments or phone bills can help build eligibility. Position your firm as the one that “opens doors” others might close.

Focus on Affordable Regions

Gen Z and millennials are avoiding expensive coastal metros and targeting affordable hubs. While Boston remains out of reach for many, smaller Massachusetts and New Hampshire markets — from Worcester to Nashua — are becoming hotspots.

Playbook Tip: Tailor marketing to highlight affordable entry points in your lending region. Show young buyers where their money stretches further.

Educate, Don’t Intimidate

Younger buyers are financially cautious. They want transparency, not jargon. Offering educational content — from down payment savings tips to debt reduction strategies — helps position lenders as trusted partners rather than gatekeepers.

Playbook Tip: Host webinars, create short guides, or even offer 1:1 consultations specifically for first-time buyers.

The Lender Recommendations at a Glance

Here’s your quick reference guide to reaching tomorrow’s homeowners:

• Emphasize low down payment / FHA products
• Highlight digital ease with online applications and virtual closings
• Promote new credit scoring models (VantageScore 4.0, rent/utility history)
• Segment geographically toward affordable regions
• Provide educational resources to build trust and financial readiness