Rethink Everything About Starting a Homeownership Journey
Mortgage experts provide financial education that empowers renters to make an informed decision to start their homeownership journey.
How to Empower Renters to Navigate the Buy vs. Rent Decision
Brian Vieaux, President and COO, FinLocker
Maximizing Opportunities to Make a Mortgage More Affordable
Catalina Kaiyoorawongs, CEO & Co-Founder, LoanSense
Maximizing Opportunities to Make a Mortgage More Affordable
Jeremy Potter, President, titleLOOK
Why Buy Now When Interest Rates Are Supposed to Drop Later This Year?
April Bowman, Sr Sales Recruiter, Axia Home Loans
Videos Ideas to Guide Renters Towards Homeownership Despite Interest Rate Fluctuations
Mike Faraci, CEO & Founder, Red Button Media
Seizing the Opportunity: Why Now Might Be the Perfect Time for Renters to Start Their Homeownership Journey
Rob Chrane, CEO & Founder, Down Payment Resource
How to Decide if You Should Buy a Home Now or Wait?
Brian Vieaux, President and COO, FinLocker
Why would anyone want to buy a home with these rates?
John Jurkovich, Founder, The Mortgage Broker Builder
Unlocking Homeownership: Strategies for Renters Looking for an Affordable Mortgage
Heather Kyle, Loan Officer, Guild Mortgage
View all previous articles
How to Empower Renters to Navigate the Buy vs. Rent Decision
Brian Vieaux, President & COO of FinLocker
Loan officers play a crucial role in guiding renters through the emotional and logical decision-making process of transitioning from renting to homeownership. One essential tool that should be in every loan officer’s arsenal is the Buy vs. Rent analysis, a dynamic assessment that adapts alongside the individual’s financial circumstances and market conditions.
This analysis should provide more than a mere one-time snapshot. It should be a dynamically changing analysis that adjusts to fluctuations in interest rates and the renter’s savings, displaying their down payment, loan amount, monthly payment and purchasing power over time. However, one of the most compelling aspects of this analysis is its ability to highlight the cost of delay.
In today’s real estate market, where property values are continually rising, the cost of waiting can be significant. Every six month delay could mean the target price of the desired home becomes out of reach for the renter. Even a modest appreciation rate of 2% can translate into a considerable reduction in purchasing power, diminishing the affordability of the dream home based on the renter’s current financial standings.
The Buy vs. Rent analysis offers much more than a static comparison of monthly rent and mortgage payments; it serves as a compass, guiding renters through the intricate maze of homeownership decisions. By highlighting not only the immediate financial implications but also the long-term consequences of delay, loan officers empower renters to make informed choices that align their lifestyle and family aspirations with their financial goals.
By leveraging a comprehensive Buy vs. Rent analysis, loan officers become advisors guiding milestone transitions, not just facilitating transactions, helping renters embark confidently on their homeownership journey while navigating the complexities of the ever-evolving real estate market.
Why Buy Now When Interest Rates Are Supposed to Drop Later This Year?
Catalina Kaiyoorawongs, CEO & Co-Founder of LoanSense
In the current housing market, buying a home now, if you can afford to do so, offers several advantages over waiting. The advantage of this market is that the people who can close are those who earn less money despite higher interest rates. The average buyer earns about $16,000 less than at the height of the lower-interest market, so homes have fewer offers. It is less of a seller’s market right now, so there is less competition, and if you’re able to afford to buy now, you can get competitive offers, buy at the listed price or even at the discounted price.
Finding methods to increase affordability is key, and maybe including some unconventional ideas, like buying a duplex with family or putting a tiny home in your backyard to help pay the mortgage.
If you’re currently unable to qualify for a mortgage right now, getting a full financial picture to determine your pathway to qualifying is important. Look into down payment assistance programs, which vary by state, and talk to a loan officer who understands them and how to work with state programs to help qualify.
Lastly, focusing on paying off the highest-impact debts to pay down or pay off may be helpful. For example, paying off huge amounts of credit card debt may not help your debt-to-income that much because debt-to-income only counts minimum payments. If you, for example, have an auto loan, paying that down may be helpful, unless you have fewer than 10 payments, the auto loan is then not included in the debt to income. If you have student loans, you can enroll in a federal program and use the difference between your fully amortized payment and your income-driven plan to pay off an auto loan, for example. Those are ways to navigate a full debt payoff plan. LoanSense can provide additional insight into student loans and help borrowers consider their student loans in their debt payoff plan.
My own housing hack I recommend to others: I purchased a large single-family zoned in an area that was legal to have multi-family units. I purchased a home with a floor plan that allowed me to split into a duplex with a large backyard. I had a custom-built tiny house for about $40,000, which helps my cash flow as I make about $1,500 a month. I list the tiny home for medium-term rentals to provide housing for mostly travel nurses and professionals, so I’m now able to cash flow on two units.
Making a mortgage more affordable involves various strategies aimed at finding “free money” from downpayment assistance and loan forgiveness programs, lowering monthly debt payments, and managing overall housing expenses. Implementing these strategies can help you get into a home and make your mortgage more manageable.
3 Ways to Respond to the Next Purchase Season
Jeremy Potter, President of titleLOOK
One of the sources of playful disagreement in the mortgage industry is whether there is a “purchase season” or not. Some say the Spring buying season leads into the Summer and sales wrap up in the Fall. This is premised on two aspects of Winter – the Holiday season for pretty much everyone and inclement weather for large parts of the country. Others hold to the “there is no season” theory asserting that year round is a good time to buy.
There is good news and bad news. The bad news is it’s April and the FED is projecting to cut rates 3 times this year, we may not get to solve this debate in 2024. The good news is that if the FED cuts rates 3 times this year, it will not matter much to mortgage pros or consumers. The more activity the better.
The only debate left is how to advise customers on a home shopping strategy. As MLOs, like real estate agents, the default is usually “it’s always a good time to buy.” Given the outlook this year, this creates three key considerations: 1). When to initiate the PreApproval, 2). How to manage the shopping timeline and 3). Using creativity to win the home.
Proactive PreApproval + Listings = Confidence
Without question, the most important thing for any first-time home buyer is knowing how much home they can afford. For years we have been saying that renters are better off “starting with mortgage” to get a PreApproval before shopping. Typically, browsing Zillow and getting excited about the house is more fun and takes priority. We are now in a market where even first-time home buyers are aware of how limited supply is causing incredible competition for homes. With no end in sight for supply and prices, we are seeing more and more consumers getting in touch with a mortgage expert BEFORE reaching out to a real estate agent or contacting a listing agent on an available home.
The bottom line is that no matter when the customer starts seriously looking they need to get PreApproved right away. Any customer PreApproved can work with the MLO to remain proactively approved as their financial situation proceeds and the market moves. This type of proactive preapproval is the future of moving renters to homeownership. Working regularly to understand the PreApproval and affordability is where MLOs can add lasting value. Proactive MLOs can identify public home listings or track those provided by the client’s agent and show the consumer 4-5 homes with their actual monthly payment. Not estimated but based on listing price, how much would the consumer actually bring to closing and actually pay either month based on their current PreApproval. Move beyond vague estimates and start getting incredibly accurate.
Associating the PreApproval to actual homes at the listing price is the best way to deliver confidence to all your clients no matter how long it takes them to find a home.
Shopping is the fun part
The data shows what you probably already know from experience. When you ask consumers how long it will be before they buy a home, they always overestimate the emotional aspects of shopping. We all know shopping is the fun part and becomes the focus of their time. This means getting PreApproved right away, in this market, will create an important challenge for MLOs.
PreApproved clients can begin shopping immediately and try to find a home prior to the rate drops and likely rush by many other buyers to bid on available homes. While there are fewer shoppers right now, it will mean a higher rate than waiting a few months would otherwise offer. The downside of this strategy is that waiting might mean a much more competitive market. It will be a Seller’s market either way but fewer other first-time home buyers now might be much more valuable than the lower rate (even over a 30 year fixed mortgage).
Of course the client can “always Refi” according to conventional wisdom but not within the first 6 months or so and who knows where we’ll be in mid-2025.
It is going to be a decision for every customer this year – start shopping when there are higher rates and fewer other offers OR wait for a lower rate and risk greater competition.
Creative Offers to Win
In addition to thinking critically about when and how to approach shopping, first-time home buyers need to get creative with their offers. One way MLOs can help first-time home buyers approach sellers is looking for 2-4 family homes where other units offset the cost of monthly payment. Many first-time home buyers are older and making more income before buying. This makes them prime candidates to handle other tenants. For instance, one trend even in this tight market is that fix and flip continues to be a nationwide trend. Another trend is factory-built housing is increasingly duplexes, triplexes, and quadplexes. A newly renovated or brand new duplex will have fewer ownership issues for an older, established first-time homebuyer. Showing clients the economics of a duplex might be a creative way to expand their shopping experience.
Another creative way MLOs can work with first-time home buyers and their real estate agent is how to frame up the purchase offer. Cash remains a seller’s preference. There are fewer and fewer reasons why. Some mortgage companies still approach closing dates with a sense of uncertainty. The best lenders, however, are becoming more reliable than cash buyers. My two cents is that the seller should not be able to discriminate. If there’s a contract to deliver money to the closing table, there really is no difference between types of cash. MLOs with the operational support can assert stronger offers on behalf of their clients. Using that approach, buyer’s agents and MLOs should be able to put together offers that compete with cash. It’s not about blindly waiving contingencies but actually removing them with more certainty.
In this market, whether today or in the next few months, MLOs will need to employ one or all of the following strategies. Be more proactive with PreApprovals. Be ready with a shopping strategy. Be creative with ways to win.
Why Buy Now When Interest Rates Are Supposed to Drop Later This Year?
April Bowman, Sr Sales Recruiter with Axia Home Loans
The home buying process or the contemplation of buying is an arduous task for even the savviest buyers. Now take a first-time buyer and you have made the task even scarier and more challenging. The interest rates, although are not coming down as fast as we want them too, they are not rising either. Purchasing now allows for the new buyer to start building equity and stop paying someone else’s mortgage in high rent cost. Wouldn’t you rather build that equity for your family? Additionally, you will begin building equity with time in the home and slowly begin upgrading items to make it your own. Updating light fixtures, faucets, door handles, new paint, maybe even new counter tops. It doesn’t take much to beautify a home and make the value increase. Perhaps build your own fire pit and enjoy S’mores this summer building memories with your family in your new home.
Many mortgage companies have a Buy Now, Refinance Later program that likely will remain in effect as long as rates remain high. This gives peace of mind as to not have to endure the expense of a refinance when interest rates drop. In addition to refinance guarantees, there are down payment assistance programs available to those who qualify. As well as Loan Originators that are talented and educated on the many programs available to guide the first-time buyer.
According to Altos Research Company, noted in last week’s Housing Wire, the trend is now showing slowly and steadily more sellers entering the market each week. Since rates are showing some leveling off after the first of the month spikes, this is spurring demand for houses going on the market creating more competition and in some cases the ability to get sellers to reduce prices. The higher interest rates can increase seller’s motivation to reduce prices as well.
There are so many reasons to purchase a home now rather than wait. First, stop paying someone else’s mortgage in high rent payments. Second, start building equity through time and renovation. Third, look for a lender that is highly educated with the programs, including Buy Now, Refinance Later, to get you a loan that works for your situation. Lastly, start building family memories now in your new home. What are you waiting for? Aren’t you ready to start building equity and wealth for your family?
Videos Ideas to Guide Renters Towards Homeownership Despite Interest Rate Fluctuations
Mike Faraci, CEO & Founder, Red Button Media
As interest rates fluctuate and the real estate market evolves, loan officers play a crucial role in guiding renters towards homeownership. With strategic video content (here we go… Mike’s talking about video again), loan officers can address common concerns and provide valuable insights to help renters confidently embark on their homeownership journey, even amidst turbulent market conditions.
Use these talking points and strategies to become a trusted resource for consumers.
Overcoming Concerns and Highlighting Advantages
In your video content, address the common concern among renters that now might not be the right time to buy. Highlight the advantages of purchasing a home now rather than waiting, especially with predicted interest rate drops. Emphasize factors such as potential savings over time, building equity, and taking advantage of current market conditions.
Qualifying for a Mortgage
Educate renters on the process of qualifying for a mortgage through informative videos. Break down the importance of knowing their credit score and reviewing credit reports, as well as understanding debt-to-income ratios. Be careful, though… complex topics (and math) tend to fall flat, so you’ll need to break these things down to an elementary school level.
Provide actionable tips for renters with student loans on managing their finances effectively to save for a down payment while meeting loan obligations… and drive home the point that they don’t need as much down payment as they think.
Making Mortgages More Affordable
Offer practical strategies in your videos to make mortgages more affordable for renters. Introduce the concept of house hacking, where individuals can leverage various housing arrangements to offset mortgage costs. Discuss options such as buying smaller homes, investing in multi-family properties, or renting out spare rooms in single-family homes. Use real-life examples and case studies to illustrate the potential savings and financial benefits of each strategy.
Leveraging Down Payment Assistance Programs
Educate renters about the existence of down payment assistance programs. Explain how these programs can significantly reduce the amount of money needed for a down payment, making homeownership more attainable. Provide guidance on accessing and qualifying for such programs, emphasizing their role in facilitating the transition from renting to owning.
By leveraging video content effectively, loan officers can empower renters with the knowledge and confidence they need to pursue homeownership despite fluctuations in interest rates while gaining their trust in the process.
Through informative and authentic video content, loan officers can address concerns, offer practical advice, and guide renters towards achieving their homeownership goals in any market conditions, giving you more opportunities to win their business when it’s time.
Seizing the Opportunity: Why Now Might Be the Perfect Time for Renters to Start Their Homeownership Journey
Rob Chrane, CEO & Founder, Down Payment Resource
Industry speculation around improved market conditions may be enough to move homeownership back to the top of the “to-do” list for many renters. However, the past few years of economic uncertainty have left their mark, and many may hesitate, wondering if now is truly the right time to make such a significant investment. Let’s take a look at why now might be the opportune moment for renters to take the plunge into homeownership and how loan officers can empower them with the tools they need for their journey.
Overcoming Timing Concerns
The age-old question of timing often plagues potential homebuyers. Should they wait for more favorable conditions, or seize the moment? We all know that market dynamics are unpredictable. Rather than betting on what interest rates will do, homebuyers should understand their full range of financing options, including down payment assistance (DPA), tax credits and bond programs, where available. In fact, in a higher interest rate environment, a bond-funded first mortgage may have a lower rate, plus homebuyers can get help with their down payment.
Homeownership also comes with many benefits, such as greater financial stability, tax deductions, freedom to personalize living space, and first-time homebuyers especially need to understand the advantages of building equity sooner rather than later. Additionally, purchasing now allows homebuyers to enter the market before home prices escalate further, as demand continues to outpace supply in many areas.
Making Mortgages More Affordable
The notion of affording mortgage payments might seem daunting, but with the right strategies, it becomes achievable. For example, house hacking, a popular concept among first-time buyers, involves purchasing a property and offsetting mortgage costs by renting out a portion of it. Whether it’s investing in a smaller home, a multi-family property (1-4 units), or renting out spare bedrooms in a single-family home, house hacking offers a practical solution to affordability concerns.
As an added bonus, down payment help may be available. Using DPA to purchase a multi-family property has become a very hot topic lately, and about 30% of the programs in our database allow funds to be used for a multi-family investment. These assistance programs often require the borrower to complete homeownership and landlord-prep classes, which will help ensure long-term stability for new homeowners.
Leveraging Down Payment Assistance Programs
One of the most significant barriers to homeownership is saving for a down payment. The good news is there are over 2,300 down payment programs available to help alleviate this burden, and program providers continue to add programs to keep up with the pace of affordability. As a matter of fact, 135 new homebuyer assistance programs debuted in 2023, a 6% uptick from the previous year.
These programs, offered by government agencies, nonprofits, and even employers, provide grants, loans, or tax credits to help eligible buyers cover their down payment and closing costs. By leveraging these resources, renters can reduce the amount of money needed upfront, making homeownership more attainable.
Bottom line, innovative financial programs and shifting market dynamics presents an opportune moment for renters to transition into homeownership. By working closely with loan officers to explore creative affordability strategies and tap into available assistance programs, renters can confidently embark on their homeownership journey. Now more than ever, the dream of owning a home is within reach for those willing to seize the moment.
How to Decide if You Should Buy a Home Now or Wait?
Brian Vieaux, President & COO of FinLocker
Buy now or wait for lower mortgage rates? That’s the question many prospective homebuyers have been struggling to answer this year. The Federal Reserve’s attempt to reduce inflation has resulted in mortgage interest rates fluctuating in the mid-6 % to 8% range, and home prices have risen about 6% in the past year, resulting in a lack of affordable entry-level homes.
The combination of factors has led many prospective homebuyers to wait until mortgage rates decrease, with the 5% range being the most popular target. However, mortgage experts predict that more prospective homebuyers will enter the market once rates decrease, further driving up home prices.
Why buy now
For renters, buying now means that you can start building equity immediately.
A recent report shows that a typical homeowner who purchased a median-priced home in January 2020, assuming a 10% down payment and the prevailing 30-year fixed mortgage rate at that time, has attained $208,000 in total home equity today. Homeowners who bought in January 2013 have accrued $343K in total home equity today.
If you can answer yes to these three questions, now is a good time to buy.
Do you have excellent credit? Your credit score is one of the determining factors that a lender will use to calculate your mortgage interest rate. The best interest rates will be available to those with at least a 720 credit score. The median credit score for mortgage borrowers in Q4 2023 was 770, according to the Federal Reserve Bank of New York. If your credit report supports your history of on-time payments, you’ll be considered a low-risk borrower, so you’ll most likely qualify for the lowest mortgage rates the lender offers.
Have you saved enough for a down payment and closing costs? Depending on the loan program, you’ll need at least 3.5% of your homebuying budget for a down payment and another 4% for closing costs. If you need financial assistance, ask your loan officer about down payment assistance programs in your city and state.
Are you planning to stay in the home for several years? Buying a home is a long-term investment. For the first few years, your mortgage payments have a higher portion of interest versus principal, so you’ll want to find a home that serves your needs for the next 5-7 years. However, as home prices increase, you’ll also be earning equity. If you find the right home now, you can always refinance when interest rates decrease.
Why wait to buy
If you answer yes to at least one of these three questions, consider waiting to buy to be able to qualify for better interest rates.
Do you have poor credit? Mortgage lenders like to see homebuyers with a minimum credit score of 640. Your credit score should be at least 720 to qualify for their best interest rates. If you have a few missed or late payments on your credit report, you should wait a few months until you’ve reestablished a credit history showing on-time payments.
Do you need to work on your financial health? If your credit cards are maxed out, you’ll have a high debt-to-income (DTI) ratio. Lenders like to see a DTI below 45%, which means you have a balance below $2250 on a credit card with a $5000 limit. If you’re expecting a sizeable commission, bonus, tax refund or some other windfall that you can add to your down payment savings, wait until that money is in the bank and ‘seasoned,’ which means it is in your bank account for a few weeks and you can explain to your lender how the money was obtained.
Do you have a long-term rental agreement? Depending on your state, most landlords require tenants requesting to terminate their lease early to provide a minimum of 30 days written notice, pay an early termination fee, which could be a month’s rent, and contribute to the advertising costs to find a new tenant. If you need to renew your lease and would like to buy a home in the next few months, ask your landlord if you can do a month-to-month lease while looking for a home.
The housing market is difficult to predict. Ultimately, the best time to buy is when you are financially healthy and have found a home that suits your needs for the foreseeable future that you can afford to purchase and maintain.
Why would anyone want to buy a home with these rates?
John Jurkovich, Founder, The Mortgage Broker Builder
What’s going to happen with mortgage rates is what is going to happen with mortgage rates. Predicted to still come down at some point later this year. Why would I want to buy a house today? Why not just wait? There’s a variety of reasons why you may want to purchase today versus waiting it out for another five or six months. Let’s look at the three that I find most compelling and why I believe homes are the cheapest they will ever be again right now.
The primary reason to consider buying a home today is the math makes sense, which supports strong financial reasons. As we’ve exited the first quarter of 2024, home prices have risen by 6% year over year. For instance, a home valued at $450,000 today could appreciate by $27,000 to $477,000 in the next year if this trend continues. This potential for appreciation, given the ongoing shortage of available homes relative to the number of new people entering the market each month, presents a compelling financial opportunity.
Moreover, when examining the financial specifics, if you were to purchase this home with a 5% down payment, the monthly payment difference between a 7% and 6% interest rate is merely $127. Over a year, this equates to an extra $1,527.66 in payments against an equity gain of $27,000. Additionally, should interest rates decrease, you would be in a good spot to refinance, potentially shedding or decreasing the private mortgage insurance and further decreasing your monthly payment. Even if interest rates stay the same, you would still benefit from significant asset appreciation. Thus, from a numerical analysis, if you’re managing your family’s finances like a CEO or CFO, buying a home now is a sound decision based on expected appreciation.
The second compelling reason to consider buying a home now relates to anticipated changes in interest rates and market dynamics. As interest rates are expected to decline, an increasing number of potential buyers are postponing their purchases, hoping to capitalize on lower rates. However, this strategy may not be as beneficial as it seems. With high interest rates currently discouraging some from buying, those who do decide to enter the market face less competition and possibly more homes to choose from. Even in the face of higher rates, homes are selling in around 30 days, and inventories have not increased.
If rates eventually drop, we can expect a sharp increase in home values due to increased demand (more buyers) and the continued shortage of available homes. This could make it difficult for those waiting on the sidelines to find their ideal home, or anything close, once they decide to enter the market. The scarcity of properties could and will likely lead to bidding wars and potentially overpaying for a home. Therefore, it might be wise to start looking for your ideal home now and be prepared to act quickly when the right opportunity arises rather than waiting and facing heightened competition and prices later.
The third compelling reason to buy a home today is the significant expansion of programs aimed at assisting first-time homebuyers. In the first quarter alone, we’ve seen an increase in these initiatives, with the number of first-time homebuyer programs rising from approximately 204 to nearly 2,400 nationwide. These programs, which are available across the country, offer various incentives such as down payment assistance, making homeownership more accessible.
Moreover, these initiatives are expanding to include not just traditional single-family homes but also manufactured and multifamily homes. This broadening of scope allows prospective buyers to consider properties that also offer potential rental income, such as multifamily units where buyers can live in one part and rent out the other.
As these programs continue to grow in number and variety, we can expect continued pressure on housing inventories. This is further compounded as more families are formed and large equity firms increasingly invest in multifamily and investment properties. This environment suggests that now is a prime time to take advantage of these programs and secure a home before competition and prices potentially rise further. For detailed insights, you can refer to the Down Payment Resource Q1 2024 Homeownership Program Index Report.
In summary, there are several reasons why waiting for lower interest rates might not be the best strategy for buying a home. Firstly, from a logical standpoint, buying sooner rather than later allows you to benefit from home appreciation earlier. The impact of a 1% difference in interest rates, while significant psychologically, translates to just a few hundred dollars more per month in payments, which isn’t substantial over the long term.
Secondly, the psychology of waiting can lead to missed opportunities. Many potential buyers are currently sitting on the sidelines, but when they eventually enter the market, we’re likely to see a significant surge in demand and property values. If you wait too long, you might find yourself facing great interest rates but no available homes to purchase, which is a worse situation than buying now with higher rates.
Additionally, today, there are numerous incentives, such as down payment assistance programs and other resources, to help buyers enter the market. These programs are time-sensitive and have limited funding, so taking advantage of them now is wise while the funds are still available.
Essentially, the best time to buy a home is now, as prices are probably only going higher from here. Connecting with a mortgage pro to help you navigate all your options effectively today is the first step. Come up with a home plan to purchase the home and set yourself on a path to successful home ownership. Control what you can control, and if interest rates drop later, refinancing is always an option. However, if they don’t, continuing appreciation will still benefit your investment.
Now is the time to realize the American Dream!
Unlocking Homeownership: Strategies for Renters Looking for an Affordable Mortgage
Heather Kyle, Loan Officer, Guild Mortgage
The journey from renter to homeowner is a big deal—a real game-changer that opens doors to equity growth and financial freedom. As pros in the field, it’s on us to shed light on the pathways that help our clients break free from the renting cycle and embrace the perks of property ownership. Let’s dive into some strategies to lead them on this exciting journey:
1. House Hacking – Maximizing Your Investment: House hacking is like a secret weapon for smart homeownership. Whether it’s buying a multi-unit property and renting out the units or purchasing a single-family home and renting out rooms, it’s all about making your property work for you. Rental income covers a chunk of the expenses, making homeownership way more doable. Let’s school our clients on these savvy strategies and watch their eyes light up. It’s not for everybody, but it’s a fantastic tool for some.
2. Co-Buying and Multi-Generational Living: Sharing costs, building bonds, and pooling resources is a game-changer. Co-buying means teaming up with family, friends, or trusted partners to buy a home together. And let’s not forget about multi-generational living—where different generations share a home— can slash individual expenses and provide security. By championing these group efforts, we empower renters to find new paths to homeownership.
According to recent data, over half of Millennial and Gen Y renters say they would be open to co-buying with a friend or family member. And with potentially more buying power, renters who couldn’t do it alone can become more competitive when searching for a home to purchase. Lastly, how about purchasing and modifying a home to include an in-law apartment or ADU with a renovation loan? We have the tools to help!
3. Creative Financing- Making Dreams Reality: Innovative financing is the key to unlocking homeownership dreams. Don’t forget these. They can be more work, but they’re worth it! Check a few options:
- FHA Loans
- USDA Loans
- VA Joint Loans (Did you know VA buyers can now purchase with a non-spouse occupying co-borrower?)
- Community Assistance Programs (CAP)
- Down Payment Assistance Programs (DAP)
4. Rent-to-Own Programs- Stepping Stones Toward Ownership: Rent-to-own programs offer a sweet bridge for renters, letting them gradually build equity while paying rent. Here’s the scoop: Part of the rent goes towards future ownership. With these programs, renters start feeling like true owners, invested in the property they call home. But this isn’t without risk! But we can highlight the pros and cons of these programs and guide clients through the process with ease.
5. New Construction, Manufactured Housing, and Cross Mods: In certain areas, new construction, manufactured housing, and cross mods offer more affordable choices for prospective homeowners. Exploring these options can open up new avenues to homeownership and financial stability.
Let’s encourage exploration! We’re not just about transactions; we’re guides, educators, and cheerleaders for our clients’ financial futures. So let’s nudge our clients to explore these options. It’s an investment in their future—moving from renter to homeowner, building equity, and securing their financial legacy.
Remember, we’re more than loan officers; we’re navigators on the journey to homeownership!