Do you have potential clients who seem a bit too content with renting?
Maybe they’re afraid they won’t quality or can’t come up with a down payment?
Whatever the reason, it’s always a good idea to share with them the current state of the rental market and the low/no-down payment programs available to first-time homebuyers.
Here’s some great intel you can pass along to get them off the fence and help them lock in a monthly housing payment that won’t go up each year:
Fact: Rent is Going Up
It’s a classic case of supply and demand. When the availability of single-family rentals shrinks, rent goes up.
According to Molly Boesel, principal economist at Core Logic, national vacancy rates decreased 0.3% from 2018 to 2019. This decline in available rentals resulted in low-end monthly rents jumping almost 4% annually in September 2019. Higher-end rental properties saw an increase of almost 3% nationally.
A Mortgage Means a Fixed Monthly Payment
With monthly rents continuing to increase, the only way to lock in a permanent monthly housing payment is to buy a home. Sure, your monthly taxes and insurance may increase slightly each year, but you will lock in your monthly principal and interest payment (if you opt for a fixed rate mortgage).
Educating your potential buyers who are still renting is critical to their financial well-being. You’re helping them build wealth and hedge their bets against a rental market that is showing no signs of slowing down.
Help Buyers Find Entry-Level Housing
The key to getting renters into their first home is to be an expert on entry-level housing in our market. That means knowing which neighborhoods have more affordable options or researching lower priced options in competitive areas.
Another great resource is home builders who specialize in starter homes. There are tons of starter homes for sale by builders on the Northshore, and many renovated homes hitting the market in good price points on the SouthShore as well.
Are You Up to Date on 3% Down Conventional, Low, and No Down Payment Loan Programs?
It’s hard saving for a down payment, and not everyone is lucky enough to have a generous mom or dad with deep pockets.
You’re never quite sure who is going to need help with a down payment, so get in touch with us today to catch up on our 3% down conventional, low, & no-down payment options including:
The More You Know, the More You Can Help Others
We are here to help educate our real estate partners on the ins and outs of lending. Let us help you convert your renters into buyers and set them off on a strong financial footing for their future.
Reach out if you have any questions or want to know more about our first-time home buyer loan programs!