HOW TO BUY MORE HOUSE FOR THE MONEY

Home prices are at all time highs. But sales are 50% lower than they were last year because of the affordability barrier facing buyers.

THE ANSWER FOR BUYERS – GET CREATIVE ABOUT FINANCING.

1. ADJUSTABLE RATE MORTGAGE (ARM) – 50 to 100 basis points lower in rate, with a payment for five years before the first payment adjustment. That gives you a long window to have a lower rate, and the ability to refinance to a fixed-rate loan.

2.BUYDOWN OPTIONS – Lenders lower the rate by 1% for the first year of the loan, for a fee.

3 SMALLER DOWN PAYMENT – assistance can come from government agencies, local organizations, and mortgage lenders — particularly for first-time buyers. In fact, the average down payment benefit totals $18,000.

4. FANNIE MAE & FREDDIE MAC – government-sponsored companies that provide capital to the market, will help some home buyers lower their insurance bills.

5.FAMILY MONEY – Nearly one-quarter (23.8%) of young home buyers received some financial help from their family to buy a house.

6. MULTI-GENERATION HOMES – 17% of homes purchased in 2024 were households with more than one generation — an all-time high.

7. ALTERNATIVE HOUSING – condominiums, co-ops, townhouses, duplexes, accessory dwelling units, tiny homes, manufactured, and mobile homes.

8. HAGGLE! – Homes are staying on the market longer. Buyers scored a nearly 8% discount off list price in 2025, and one-quarter of buyers got price cuts of 10% or more.

9.IMPROVE YOUR CREDIT – Build your credit profile keeping credit balances low.

10. A 6% MORTGAGE IS A GOOD THING! Approximately the 20-year historical average. The probability of ever seeing the pandemic rates of 2.5-3.5% is remote.

CALL ME FOR MORE INFORMATION ABOUT CREATIVE SOLUTIONS TO YOUR REAL ESTATE ISSUES!

818-451-7417