How To Make Homeownership Easier in 2024

By Nick Garcia

Nick Garcia navigates the complexities of the mortgage industry with analytical precision and strategic foresight. As President and Chief Lending Strategist at Smarter Lending, his mission is to make homeownership accessible and financially sensible for individuals with intricate financial situations.

Have you heard? Renters are at a disadvantage according to the latest economic report by CoreLogic. Based on their findings, there has been an increase in rent year over year, going from 2.6% to 3.4%. On the other hand, as of this month, we are at a seven-year low for new multi-family construction. Multi-family constructions are apartment complexes, duplexes, and triplexes.

Looking at the bigger picture, if we have a low supply of multi-family homes paired with an increase in rent, then rental dues will continue to go up. This is a good thing for investors, but not for first-time homebuyers, budget-wise. To help first-time homebuyers become homeowners, there are two things that you need:

1. Programs and strategies that conserve your cash. These can help lower your cash-down payment requirement. There are 1% down grant programs, as well as down payment assistance that covers your entire down payment. You can also reduce your monthly payment through mortgage insurance reduction programs that are based on your income. Buydowns or temporary buydowns also exist to reduce your interest rate by up to 3% for up to three years.

Using the right tools is crucial when dealing with a market with a higher interest rate. The challenge is not the interest rate per se, because when you think about rent, that’s a 100% interest rate. It’s how you can make it work with your budget. When you know where to look, you can find tools and programs that can help you with that.

2. Tools and strategies for risk mitigation and management. I’ve seen a lot of people wanting to buy a home where there is no risk. But that’s just not possible. What you can do instead is mitigate and manage your risks in such a way that if things go wrong, you and your family are going to be okay.

Now is the best time to make a move because home values are steadily rising. Similarly, rent is also going up and will continue to do so. Renting is not a feasible alternative to homeownership, as it is a short-term solution.

Are you a homebuyer, a renter, or someone looking for better housing options? Get in contact with us and let’s schedule a strategy call so we can talk about your current financial situation and homeownership plans. You can call us or send us an email; I’ll be happy to connect with you.