It’s often said that the secret to success is the ability to dig deep. Two years ago, many homebuyers of modest means could get home financing and make their dreams of homeownership a reality. Today, however, rising interest rates have slashed their numbers. In fact, the Mortgage Bankers Association (MBA) recently adjusted its mortgage forecast to 1.8 trillion, down 2.7% from its March forecast of almost 1.85 trillion.
Compounding the matter is the fact that demand for homes has remained resilient and home prices are still rising in many markets. The median U.S. home price in 2023 is nearing $400,000, according to the latest numbers from the National Association of Realtors, which has placed homeownership even more out of reach for many families, especially Millennials and people of color.
Navigating this tricky landscape requires new strategies and approaches, as the old norms no longer apply. In the past, it was enough to focus on borrowers with high incomes and good credit scores. Now, lenders need to cast a much wider net.
And yet, there are still pockets of opportunity for diligent lenders and loan officers who are willing to adapt.
Even though the housing market is challenging, savvy lenders and loan officers can boost production by serving potential homebuyers who may not have qualified two years ago—but could qualify today under certain conditions.
For example, there are still many people who desire to own a home and are ready to adjust their goals by looking in less-desirable neighborhoods and applying for smaller mortgages. These borrowers may have passed on these homes in the past, but they may be more willing to consider them now given today’s market challenges.
Another group of borrowers who are worth looking at are those who can qualify for government-backed loan programs, such as FHA loans. These loans accommodate individuals with imperfect credit or little credit history, in contrast to conventional loans, which typically have higher credit score requirements. FHA Loans also usually require some form of homebuyer education courses to help borrowers with the transition into homeownership.
Lenders should also consider serving buyers in rural markets that may have been overlooked during the pandemic, but now hold untapped opportunities for affordable homeownership. Yet another group is older buyers and retirees, who may not have much savings, but could have sufficient assets to qualify for a mortgage.
One thing most of the above prospects often share is the lack of savings for a down payment. So, if you’re trying to dig deeper to serve more homebuyer prospects, there is no better shovel than down payment assistance (DPA). And the best way to get yourself this shovel is through the Chenoa Fund program.
DPA programs like the Chenoa Fund provide a crucial lifeline to buyers who may have the financial ability to make monthly mortgage payments but simply lack the upfront cash required to buy a home. In fact, qualified homebuyers can access up to 5% of their home’s cost in DPA, with both repayable and forgivable loan options.
Through its Chenoa Fund program, CBC Mortgage Agency has a proven track record of helping more than 40,000 homebuyers overcome their down payment hurdles, achieve homeownership, and transform their financial future through home equity. In fact, by partnering with CBC Mortgage Agency, you’ll not only be able to help more prospects buy a home—you’ll also be contributing to their financial stability and long-term prosperity.
Ready to start digging? Just give us a call at 866-563-7572 or drop us a note at info@chenoafund.org, and we’ll be happy to get you started.
CBC Mortgage Agency – NMLS 1186381
For licensing information, go to www.nmlsconsumeraccess.org.
Illinois Residential Mortgage License #MB.6761292. Illinois Department of Financial and Professional Regulation, Division of Banking, 100 West Randolph, 9th Floor, Chicago, IL 60601 – 1-888-473-4858. This information is provided by CBC Mortgage Agency and intended for real estate and mortgage professionals only. It is not intended for public use or distribution. Terms and conditions of programs and guidelines are subject to change at any time without notice. This is not a commitment to lend. Equal housing opportunity.
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