Four ways homebuyers can win in today’s challenging housing market
Sponsored by Synergy One Lending
Higher prices and stubborn interest rates have kept plenty of would-be homeowners on the sidelines. But according to Synergy One Lendng VP of Production Toby Arceneaux, buyers who know where to look have more financing options than they might expect.
There isn’t a one-size-fits-all mortgage anymore, and the mortgage professionals at Synergy One Lending can help borrowers identify the right strategy to make a real difference, whether that means a lower monthly payment, less cash needed at closing, or a way to qualify that a traditional loan wouldn’t allow.
Here are four places to start.
1. Turn seller concessions into buying power
Sellers in many markets are more willing to negotiate than they were a few years ago. Beyond haggling over price, buyers can ask for concessions—costs the seller agrees to cover on the buyer’s behalf, such as closing costs, prepaid taxes and insurance, or an interest rate buydown.
Which concession makes the most sense depends on the goal. Putting seller money toward a rate buydown lowers the monthly payment and helps offset today’s higher rates. Applying it to closing costs or prepaid expenses reduces the amount a buyer has to pay out of pocket.
2. Explore down payment assistance
For many buyers, coming up with the down payment and closing costs is a bigger hurdle than qualifying for the loan itself. And despite what many people assume, you don’t need 20% down.
A variety of down payment assistance programs and financing options can help qualified buyers shrink their upfront costs. A good lender can identify the right programs based on a buyer’s income, location, loan type and individual circumstances—an approach that has been a real advantage for first-time buyers.
3. Look beyond the W-2
Not every borrower earns a traditional paycheck. Self-employed borrowers, business owners and others often have alternative ways to show they can repay a loan.
Depending on the program, bank statement loans allow qualified self-employed borrowers to document income using business or personal bank deposits, rather than relying solely on tax returns.
4. Let the property help you qualify
A recent guideline change allows current homeowners to convert their existing home into a rental property and use a portion of that rental income to offset the payment on their new mortgage.
Investors have another valuable option. Debt Service Coverage Ratio (DSCR) loans qualify borrowers primarily on whether a property generates enough rental income to cover its debt obligations, rather than on the borrower’s personal income. That can open doors for investors who don’t fit conventional income guidelines.
From seller concessions and down payment assistance to alternative income documentation and investment-property financing, today’s buyers have more paths to homeownership than they may realize.
The key is working with a mortgage professional who understands the full range of available solutions and can build the financing around each buyer’s specific situation. In a challenging market, the right plan and the right partner can turn “not yet” into “welcome home.”
Explore how Synergy One Lending can help you overcome the challenges in today’s housing market at s1l.com/branch/baton-rouge.
Synergy One Lending, Inc., NMLS 1907235 | www.nmlsconsumeraccess.org | 610 W. Ash Street, Suite 1505, San Diego, CA 92101 | (888) 995-1256 | AL, AR, FL, GA Residential Mortgage License #70829, LA, MS, NC, SC, TN, TX. All Loans are subject to underwriting approval. Terms and Conditions apply. Subject to change without notice. Equal Housing Opportunity.
