Homebuyer Hub

Check out the latest blogs to help you in your home-buying process.

5 Things You Should Ask Your Realtor

    
Buying a home is a major life decision. With all the various processes, paperwork, and open houses, it can be quite a stressful situation. This is why having an experienced realtor is important in your search for your next home.

In this article, we’ve put together 5 questions you should ask your realtor to make sure they have you and your family’s best interest in mind when viewing a home.
 
This provides insight into potential issues with the property or neighborhood, or may indicate a motivated seller who may be open to negotiations.
It’s crucial that you get clarification on whether appliances, fixtures, or any other items included in the sale, which will affect the overall value and moving plans.
Future developments can impact property values, traffic, noise levels, and overall neighborhood quality.
Depending on the location of the property, your property taxes can vary significantly, affecting your housing budget.
Understanding all the steps involved in making an offer ensures you are prepared and can act quickly if needed.
   
By asking these questions, you can gather comprehensive information about the property, neighborhood, financial aspects, and the buying process, helping you make a well-informed decision when purchasing a home. Happy house hunting!
 
 
 
 

Q&A with Top Local Agents

      
Whether you are in the process of buying a home, considering buying a home, or simply want to know more about mortgage lending, our local and highly skilled Mortgage Loan Consultants are available to answer any questions you have about the process. Here are the most common questions about mortgage lending, answered by our very own team.
 
Lenders want to ensure they are giving money to responsible individuals who are likely to pay down the loan in full. Several key factors are considered when approving a mortgage, these factors include:
 
  • Credit score
  • Income and employment
  • Debt-to-income ratio
  • Amount of down payment
  • Property appraisal
  • Assets and reserves
  • Documentation and verification
  • Current market conditions
The Debt-to-Income (DTI) ratio is a measure that compares your monthly debt payments to your monthly gross income. It is used by lenders to assess your ability to manage monthly payments and repay the money you intend to borrow. See the example below:
 
Total Monthly Debt Payments: $2,000
Gross Monthly Income: $6,000
DTI Ratio = (2,000/6,000) x 100 = 33.33%
 
This percentage allows the lender to assess borrowing risk, qualification for a mortgage, and determine the loan amount and interest rate. Most lenders prefer a DTI ratio of 43% or lower, but some may allow higher ratios, especially for borrowers with strong credit scores, larger down payments, or substantial cash reserves.
Fixed-rate mortgages have an interest rate that is set when you take out the loan and will not change throughout the loan's term. This typically makes it easier for homeowners to budget and provides protection from sudden changes in mortgage rates.

Adjustable-rate mortgages have an interest rate that may go up or down throughout the loan's term. They are typically much cheaper than a fixed-rate mortgage at least in the first 3-7 years. However, the monthly payment can change frequently, making it difficult to budget.
The first step is to have a discussion with your mortgage consultant. The next step is getting an application in, this is when the mortgage consultant will pull your credit, and enter all your data with respect to employment, income, etc… If everything looks good, a pre-approval letter is issued!
Interest rates on mortgages are determined by a combination of factors including economic conditions, market forces, and individual borrower characteristics.
Your monthly mortgage payment is typically composed of four main components: principal, interest, taxes, and insurance, commonly referred to as PITI.
      
Have more questions? Get in touch with our team today!
    
 
   
 

How are Property Taxes Calculated? A Simple Guide

    
Property taxes are a vital part of homeownership, funding local services like schools, emergency services, and infrastructure. Understanding how property taxes are calculated can help you budget for homeownership and make informed financial decisions.

What Are Property Taxes?
Property taxes are taxes that homeowners pay annually based on the value of their property. These taxes are typically levied by local governments, including cities, counties, and school districts, and the revenue is used to fund essential public services.

How Are Property Taxes Calculated?
The amount of property tax you owe is determined by two main factors: the assessed value of your property and the tax rate in your area.
   
The assessed value is the value of your home as determined by the local tax assessor. This value is usually based on the fair market value of your property, which takes into account the sale price of similar homes in your area, improvements made to the property, and overall market trends.

The assessed value can be updated periodically, often annually or during a reassessment period. In some areas, there may be limits on how much the assessed value can increase each year.
The tax rate, also known as the millage rate, is set by your local government. It is expressed as a percentage of the assessed value of your property. For example, a tax rate of 1% means you pay $1 in taxes for every $100 of assessed value.

Different jurisdictions may have multiple tax rates depending on the services they provide. These can include county, city, school district, and special district taxes, all of which are combined to determine your total tax rate.
 
   
Example Calculation:
Let’s say your home has an assessed value of $300,000, and the total tax rate in your area is 1.25%. To calculate your property taxes, you would multiply the assessed value by the tax rate:

Property Tax = Assessed Value × Tax Rate
Property Tax = $300,000 x 0.0125 = $3,750

In this example, you would owe $3,750 in property taxes for the year.
   
Factors that can affect property taxes: 
 
Some homeowners may qualify for property tax exemptions, which can reduce the amount of tax owed. Common exemptions include those for senior citizens, veterans, and homeowners who use the property as their primary residence.
If you believe your property has been over-assessed, you can appeal the assessment with your local tax assessor's office. A successful appeal could lower your property taxes.
Property taxes can also change if local governments adjust their tax rates, often as a result of budgetary needs or voter-approved measures.
  
We’re on your team
By understanding how property taxes are calculated, you can better anticipate your annual costs and take advantage of any potential savings, like exemptions or appeals. If you have specific questions about your property taxes, contact our Mortgage Team today!
 
   
     

How Escrow Works: A Step-By-Step Process

    
What is Escrow?
Escrow is a neutral third-party service that ensures all aspects of a real estate transaction are handled fairly for both the buyer and seller. This legal process protects both parties by holding funds, documents, and other necessary items until all conditions of the sale are met. Here's how it works: 
 
Once the buyer and seller agree on the terms of the sale and sign the purchase agreement, escrow is officially opened. An escrow officer, typically from an escrow company or a title company, is assigned to manage the process. At this stage, the buyer will deposit their earnest money, which is held in the escrow account.
During escrow, both parties work to fulfill their responsibilities. The buyer usually conducts inspections, secures financing, and reviews the title report to ensure the property is free of liens or legal issues. The seller, on the other hand, completes any agreed-upon repairs and provides necessary disclosures.
Most real estate transactions have contingencies, such as financing, inspections, and appraisals, that must be satisfied before the sale can proceed. Once these contingencies are met, the transaction moves forward.
Once all contingencies are satisfied, the escrow officer prepares the necessary documents for closing. The buyer and seller will sign the final paperwork, including the deed and loan documents. At this point, the buyer will transfer the remaining funds, which are held in escrow until the transaction is completed.
After everything is in place, the escrow officer distributes the funds to the seller and ensures the deed is recorded with the county. Once the deed is recorded, ownership officially transfers to the buyer, and escrow is closed. The buyer receives the keys to their new home, and the transaction is complete.
    
Why is Escrow Important?
Escrow provides a layer of security in a real estate transaction, ensuring that both parties fulfill their obligations before any money or property changes hands. It protects the buyer's deposit, ensures that the seller gets paid, and helps prevent fraud or misunderstandings.
 
We're on your team
Understanding the escrow process can help you feel more confident and prepared as you move through your real estate transaction. If you have any questions or need assistance, our experienced Mortgage Team is here to guide you every step of the way.
 
   
 

Saving Strategies to Help You Buy Your Next Home

   
 
Buying a home in California is a dream for many, but with the state’s high housing prices, it can feel out of reach. But, don’t worry! With a little planning and dedication, you can make it happen. Here are some friendly, practical strategies to help you save for your next home:
 
The first step is knowing how much you need. Research the current home prices in your desired area, then determine your target savings for a down payment. Many experts recommend saving at least 20% of the home price, but programs are available with lower down payments. Once you know your goal, create a monthly savings plan.
Consistency is key to growing your savings. Set up automatic transfers from your checking account into a dedicated savings account. That way, you won’t even have to think about it—your savings will grow without extra effort.
Take a look at your spending and identify areas where you can cut back. Do you really need all those subscription services? Are you eating out more than you realized? Every dollar you save from cutting non-essentials can go directly toward your future home.
California offers various first-time homebuyer assistance programs that can help with down payments or offer favorable loan terms. Be sure to research your options in cities or counties where you’re considering buying a home.
Instead of keeping all your savings in a basic account, consider putting some into higher-yield options like a money market account or a certificate of deposit (CD). These options can help you grow your money faster while keeping it relatively safe.
If you’re serious about saving for a home, finding ways to boost your income could give your savings a nice boost. Whether it’s picking up a side gig, freelancing, or selling items you no longer use, every bit helps.
Saving for a home is a marathon, not a sprint. It takes time, so stay focused on your goal and celebrate small milestones along the way. The journey to homeownership may take effort, but it’s well worth it!
   
 
By following these strategies and staying committed, you’ll be that much closer to owning your next home in California. Remember, it’s all about taking one step at a time and making smart financial choices. Our dedicated team of experts is here to help. Contact us today!
   
 
  
 

Becoming a Homeowner: The Upsides and Downsides

   
 
Owning a home is a major milestone and a dream for many people. However, before you dive into the world of homeownership, it’s important to weigh both the advantages and disadvantages. Here’s a friendly guide to help you decide if buying a home is right for you!
 
  1. Building Equity. One of the biggest perks of owning a home is that you’re building equity over time. Instead of paying rent to a landlord, your mortgage payments contribute toward ownership, increasing your home’s value as you pay it off.
  2. Stability and Freedom. Homeownership offers a sense of stability. You won’t have to worry about sudden rent increases or lease renewals, and you have the freedom to personalize your space. Want to paint the walls or redo the kitchen? Go for it! It’s your space.
  3. Tax Benefits. Homeowners often enjoy tax advantages, such as deductions on mortgage interest and property taxes. These benefits can help offset some of the costs associated with owning a home.
  4. Long-Term Investment. Real estate has historically been a good long-term investment. If home values increase over time, you could sell your property for a profit down the road. Owning a home can also help you diversify your financial portfolio.
  1. Upfront Costs. Buying a home requires a significant upfront investment. Between the down payment, closing costs, and other fees, it can take years to save enough money. This can be a big hurdle, especially in high-cost areas like California.
  2. Maintenance and Repairs. As a homeowner, you’re responsible for all maintenance and repairs. From leaky roofs to plumbing issues, the cost of upkeep can add up quickly. You’ll need to budget for regular maintenance and be prepared for unexpected expenses.
  3. Less Flexibility. Unlike renting, owning a home ties you to one location. If you’re someone who values the flexibility to move for a new job or lifestyle change, homeownership might feel limiting. Selling a home is more complicated and time-consuming than ending a lease.
  4. Market Risk. While homes can appreciate in value, they can also lose value if the housing market declines. You might not always get back what you put into your home, especially if you need to sell during a downturn.
   
 
Is Homeownership Right for You? 
Owning a home is a rewarding experience for many, but it’s not without its challenges. It offers long-term financial benefits and stability but comes with significant responsibilities. Carefully consider your financial situation, lifestyle, and long-term goals before making the leap into homeownership.
 
Are you ready to take that leap? Talk with our knowledgeable Home Lending Team today.
  
 
  
 

Holiday Homebuying Tips

 
 
The holiday season is a busy time for family gatherings, shopping lists, and festive planning, but it can also be a golden opportunity to find and close on a new home. Buying a home during the holidays might seem daunting, but with a few strategic tips, it can be the perfect time to secure your dream home.
 
The end of the year often sees fewer buyers actively searching for homes, which can mean less competition for you. This lower demand could lead to better deals and give you more negotiating power. Sellers listing their homes during the holidays may be motivated to close quickly, creating a potential win-win situation.
It’s easy to get swept up in holiday spending, but before diving into the homebuying process, set a clear, realistic budget. Knowing what you can comfortably afford will help streamline your search and keep you from overextending during an already costly season. Remember, your holiday spending shouldn't overshadow your long-term home investment.
Interest rates can be favorable towards the end of the year as lenders seek to meet annual quotas. If you secure a good rate, it can translate into substantial savings over the life of your mortgage. Keep an eye on rates and consider locking in if you find a rate that fits your budget.
The holidays are about prioritizing the people and things that matter most, and the same principle applies to homebuying. Define what’s essential for you in a home and focus on those elements. Maybe it’s proximity to work or a home with space to entertain family and friends. A clear set of priorities will help you focus on what truly fits your lifestyle.
The holiday season tends to be shorter on the business front, with many companies and professionals taking time off. Make sure to stay organized, submit paperwork promptly, and maintain open communication with your lender, agent, and attorney to help ensure a smooth, timely closing.
It’s easy to fall in love with a home decked out for the holidays, but think about how it will serve you year-round. Imagine future holidays, everyday life, and special occasions in this space. A little vision now can go a long way in ensuring this investment brings joy well beyond the holiday season.
  
 
With the right preparation and a clear vision, you can make the holiday season a rewarding time to buy a home. After all, what better way to celebrate than by giving yourself the gift of homeownership?

Talk with a member from our Home Lending Team today!
 
 
 
 

Understanding Closing Costs: What You Need to Know

 
 
Purchasing a home is an exciting journey, but it comes with various costs to consider along the way. One of these is mortgage closing costs—a set of fees and expenses that must be paid before you can finalize your loan and get the keys to your new home. While the term might sound intimidating, understanding closing costs can help you better prepare and budget for a successful closing day.

What Are Closing Costs?
In short, closing costs are the fees and expenses associated with the completion, or “closing,” of a mortgage. These can include everything from application fees to home appraisal costs, title insurance, and even attorney fees in some cases. They cover the services and tasks involved in finalizing the sale and the mortgage itself, ensuring all legal requirements and protections are in place for both you and the lender.

How Much Are Closing Costs?
Typically, closing costs range between 2% and 5% of the total loan amount. So, for a $300,000 mortgage, you might expect to pay between $6,000 and $15,000 in closing costs. While it’s an additional expense, it’s a necessary part of securing a mortgage and ensures the sale is processed smoothly and securely.
 
What’s Included in Closing Costs?
While specific costs may vary depending on the lender, location, and other factors, here are some of the most common components:
 
This covers the lender’s costs for processing your loan application.
These ensure that the home’s value and condition align with the loan amount.
Title insurance protects against any legal issues with property ownership, while the search verifies a clear title.
Many loans require an escrow account for future property tax and insurance payments.
Depending on your closing date, you may need to prepay certain amounts for these
  
 
How Can You Lower Closing Costs?
There are a few ways to potentially reduce closing costs. Some lenders offer options to roll closing costs into the loan balance, meaning they’re paid over time rather than upfront. Others may offer discounts or negotiate certain fees. Shopping around and comparing lenders is always helpful—you may find that some offer lower fees or are willing to waive certain costs.
 
The Bottom Line
Understanding and preparing for closing costs can help you feel more confident and informed as you navigate the home-buying process. While they may seem like an extra expense, closing costs cover essential steps that protect your investment and make sure your home purchase is legally sound. And remember, your mortgage lender is there to answer questions and help you understand exactly what’s included in your closing costs.
 
By taking the time to plan for these expenses, you’re one step closer to a smooth, stress-free closing and enjoying your new home!
 
  
 
  
 

From White House to Your House: How a Presidential Transition Impacts Real Estate

  
 
As the nation gears up for a presidential transition, many Americans are left wondering how this shift in leadership will affect the housing market. Historically, changes in the White House can influence economic policies, interest rates, and consumer confidence—all of which play a significant role in the real estate industry.
 
Here’s what you can expect as we prepare for a new administration:
 
One of the most immediate concerns for homebuyers and homeowners is how interest rates will react. The Federal Reserve, while independent of the presidency, may adjust rates based on economic outlooks tied to the incoming administration's fiscal policies. A more aggressive approach to inflation or economic growth could lead to higher mortgage rates, while policies aimed at economic stability might keep rates low.
 
What to Do:
If you’re planning to buy or refinance a home, monitor interest rates closely. Locking in a rate sooner rather than later might save you money if rates begin to rise.
 
Presidential policies on taxes, job creation, and affordable housing can impact both housing supply and demand. A focus on infrastructure and new construction could increase housing inventory, making it easier for buyers to find homes. Conversely, policies that drive job growth in specific regions could lead to increased demand and rising home prices in those areas.
 
What to Do:
If you’re considering a move, research local market trends and potential changes in job growth or infrastructure development in your area.
 
New administrations often propose changes to tax policies that can directly affect homeowners. Mortgage interest deductions, property tax deductions, and first-time homebuyer incentives may be revised or expanded. These changes could either reduce or increase the overall cost of homeownership.
 
What to Do:
Stay informed about potential changes in tax laws and consult with a financial advisor to understand how they might impact your personal finances.
 
A presidential transition can create uncertainty in the economy, which may lead to cautious behavior among buyers and sellers. However, once policies become clearer, consumer confidence typically stabilizes. The housing market’s long-term outlook often depends on broader economic health, including employment rates and inflation.
 
What to Do:
If you’re unsure about buying or selling during this period, consider your long-term goals. Real estate is typically a long-term investment, and temporary fluctuations may not significantly impact your overall financial picture.
 
 
 
Final Thoughts
While it’s natural to feel uncertain during a presidential transition, it’s important to remember that the housing market is resilient. Staying informed and proactive can help you navigate any changes with confidence. As always, consult with a mortgage professional or real estate expert to make the best decisions for your situation.
 
Whether you’re buying, selling, or refinancing, understanding how national policies impact the housing market can help you stay ahead of the curve. Our team of professionals are available anywhere, anytime to answer any questions, contact us today!
 
 
 
  
 

What to Expect in the Housing Market in 2025

  
 
2025 is here, and homebuyers are navigating a dynamic housing market shaped by evolving economic conditions, technological advancements, and changing consumer preferences. Whether you're a first-time buyer or looking to upgrade, understanding the trends that will likely define the real estate landscape can help you make informed decisions. Here’s a comprehensive look at what homebuyers can expect in the housing market in 2025.
 
After years of fluctuations, mortgage rates are expected to stabilize in 2025, providing much-needed predictability for buyers. Although rates may remain slightly elevated compared to historic lows, the steadiness will make it easier for buyers to plan their finances and calculate long-term affordability.
 
What It Means for Buyers:
Fixed-rate mortgages may regain popularity, offering buyers peace of mind with predictable monthly payments. For those considering adjustable-rate mortgages (ARMs), the stabilized environment might make these options less risky.
The meteoric rise in home prices seen in previous years is expected to decelerate, bringing some relief to buyers. While prices may not drop significantly due to ongoing demand and limited inventory, the slower growth will create a more balanced market.
 
What It Means for Buyers:
Buyers might have more time to make decisions without the fear of being priced out. Negotiation opportunities may improve, especially in markets with higher inventory levels.
Despite efforts to increase housing supply, inventory shortages are likely to remain a key challenge in 2025. Factors such as labor shortages, rising construction costs, and zoning regulations continue to impact new home construction.
 
What It Means for Buyers:
Competition for desirable homes may remain fierce, especially in sought-after locations. Buyers should be prepared to act quickly when they find a property they love and consider expanding their search to less conventional areas.
Sustainability will play a larger role in 2025, as more buyers prioritize energy-efficient homes that reduce utility costs and environmental impact. Features like solar panels, smart thermostats, and energy-efficient appliances will be top of mind.
 
What It Means for Buyers:
Homes with eco-friendly features may command higher prices, but they also offer long-term savings. Buyers should evaluate the cost-benefit ratio of investing in sustainable properties or retrofitting older homes.
The remote work trend, solidified during the pandemic, will still influence housing preferences in 2025. Many buyers are prioritizing homes with dedicated office spaces, reliable internet, and proximity to lifestyle amenities rather than workplaces.
 
What It Means for Buyers:
Suburban and rural areas may continue to see growth as remote workers seek affordable housing with more space. Urban properties might offer better value as demand shifts outward.
Technology will play a bigger role in the homebuying process in 2025. Virtual tours, AI-driven property recommendations, and blockchain-based transactions are becoming standard tools for buyers and sellers alike.
 
What It Means for Buyers:
The buying process will be faster and more efficient, but buyers should ensure they still conduct thorough due diligence, such as in-person inspections and consulting with real estate professionals.
As affordability remains a challenge, lenders are likely to introduce innovative financing options tailored to modern buyers. Shared equity loans, flexible down payment plans, and green mortgages are expected to gain traction.
 
What It Means for Buyers:
Buyers will have more financing choices to fit their unique circumstances. However, it's essential to fully understand the terms of non-traditional loans and how they impact long-term financial goals.
In 2025, Millennials and Gen Z will continue to drive demand in the housing market as they reach prime homebuying age. This shift will influence market preferences, with greater emphasis on affordability, technology, and lifestyle-oriented features.
 
What It Means for Buyers:
Younger buyers may face intense competition in entry-level markets. However, they also benefit from tailored products and services designed to meet their preferences.
The housing market will remain highly localized, with some regions experiencing stronger growth than others. Factors such as population migration, economic conditions, and local policies will shape regional trends.
 
What It Means for Buyers:
Researching specific markets is crucial. Buyers should focus on areas with strong job growth, good schools, and future development potential to ensure a sound investment.
A growing trend in 2025 is the development of build-to-rent communities, catering to those who value flexibility over long-term ownership. These communities often include modern amenities and maintenance services.
 
What It Means for Buyers:
For those unsure about homeownership, these communities offer an alternative that combines the benefits of renting with the lifestyle of a homeowner.
  
 
The housing market in 2025 is shaping up to be a more balanced yet still competitive environment. Buyers can expect opportunities for growth and innovation but must remain prepared for challenges like inventory shortages and affordability concerns. By staying informed about market trends, exploring diverse financing options, and working with knowledgeable professionals, homebuyers can navigate this evolving landscape with confidence.
 
Whether you're planning to buy your first home or your next, the key to success in 2025 is preparation and adaptability. Stay ahead of the trends, and your dream home may be closer than you think.
  
  
 
  
  

How Millennials and Gen Z are Influencing the Housing Market

  
 
The housing market has experienced significant shifts over the past decade, driven largely by the growing influence of Millennials and Gen Z. As these younger generations increasingly enter the market, they bring fresh perspectives, unique priorities, and new demands that are reshaping how homes are bought, sold, and valued. Here's a closer look at how Millennials and Gen Z are influencing the housing market in 2025.
 
Both Millennials and Gen Z are highly attuned to economic realities, including rising housing prices and student loan debt. As a result, many are prioritizing affordability and exploring non-traditional housing options. Tiny homes, co-living arrangements, and suburban developments offering better price points are becoming increasingly popular.
 
Key Impact:
Developers are focusing on smaller, more affordable units that cater to first-time buyers. Additionally, flexible financing options and mortgage assistance programs are gaining traction to accommodate this affordability-driven mindset.
Environmental consciousness is a defining characteristic of Millennials and Gen Z. They seek homes with energy-efficient appliances, renewable energy sources, and sustainable building materials. Certifications like LEED (Leadership in Energy and Environmental Design) and green mortgage options are more appealing to these environmentally aware buyers.
 
Key Impact:
Builders and sellers are incorporating eco-friendly features to attract younger buyers. Solar panels, smart thermostats, and sustainable landscaping are no longer optional—they’re competitive necessities.
Growing up in the digital age, Millennials and Gen Z are comfortable leveraging technology in the homebuying process. They rely on online listings, virtual tours, and digital mortgage platforms to streamline the journey. Social media also plays a key role, with many turning to platforms like Instagram and TikTok for design inspiration and market insights.
 
Key Impact:
Real estate agents and companies are investing in digital tools, such as 3D home tours, AI-driven property recommendations, and mobile-friendly platforms, to cater to these tech-savvy consumers.
Millennials have traditionally gravitated toward urban centers, valuing walkability, public transportation, and proximity to amenities. However, Gen Z is showing a stronger inclination toward suburban and rural areas, partly driven by the rise of remote work and a desire for larger, more affordable spaces.
 
Key Impact:
Suburban markets are experiencing growth, with developments designed to blend suburban tranquility with urban-style conveniences. Work-from-home amenities, such as home offices and high-speed internet, are in high demand.
For Millennials and Gen Z, a home is more than just a place to live—it's an extension of their lifestyle. They prioritize features that support work-life balance, such as home offices, gym spaces, and outdoor areas. Community amenities like parks, coworking spaces, and social hubs are also highly valued.
 
Key Impact:
Builders and developers are creating properties with versatile spaces and amenity-rich neighborhoods to attract younger buyers.
Despite their enthusiasm, many Millennials and Gen Z face significant financial barriers to homeownership, such as rising home prices, inflation, and stagnant wages. However, they are finding creative solutions, such as co-buying with friends or family, pooling resources for down payments, and utilizing first-time homebuyer programs.
 
Key Impact:
Mortgage lenders are designing products specifically for younger buyers, such as lower down payment options, flexible loan terms, and education programs to guide them through the process.
Unlike previous generations, Millennials and Gen Z are redefining what it means to "settle down." Many prioritize experiences over possessions, opting for smaller homes to save money for travel or personal endeavors. The traditional 30-year mortgage is less appealing, with some preferring shorter commitments or even long-term renting.
 
Key Impact:
The market is seeing a rise in innovative housing models, such as build-to-rent communities, that cater to younger generations’ preference for flexibility.
 
 
Millennials and Gen Z are transforming the housing market in profound ways, from demanding more sustainable options to leveraging technology and redefining affordability. These generations are not only reshaping how homes are bought and sold but also influencing the broader real estate industry’s approach to design, financing, and marketing. As they continue to gain financial stability and expand their influence, their preferences will undoubtedly shape the housing market for years to come.
  
 
 
 
 

Middle-Income Downpayment Assistance: Get Ready for 2025
 

  
In 2024, Sacramento Credit Union helped 20 members take advantage of the $50,000 Middle-Income Downpayment Assistance Program—distributing a total of $1 million to families achieving their dream of homeownership. With the program continuing in 2025, we’re eager to help even more families. In this guide, you’ll learn what the Middle-Income Downpayment Assistance Program is, who qualifies, and how to prepare to stay ahead of the competition.
 
One of the biggest challenges to homeownership is affording the downpayment and closing costs. With rising home prices and interest rates, many middle-income households find it increasingly difficult to buy a home. To make homeownership more accessible—especially for essential community members like teachers, medical assistants, and administrative workers—In 2024, FHLBank San Francisco renewed the Middle-Income Downpayment Assistance Program with a $20 million allocation, and we eagerly await to hear what they will announce in 2025.* We anticipate that the program guidelines are subject to change from what they were in the previous year.
 
Sacramento Credit Union is one of the select financial institutions participating in this program, giving our members the opportunity to receive these funds. The best part? This grant does not need to be repaid.
To apply for this program, you must meet the following requirements:
 
  • Be a first-time homebuyer, as defined by the U.S. Department of Housing and Urban Development (HUD).
  • Have a household income between 80.01% and 140% of the HUD-Defined Area Median Income (AMI) for the home’s location, adjusted for household size.
  • Successfully complete a homebuyer counseling program.
  • Purchase an eligible primary residence in Arizona, California, or Nevada, which may include:
    • Single-family homes (including condominiums, cooperative housing, and manufactured homes).
    • Multi-unit properties (two to four units) with at least one owner-occupied unit.
  • Open escrow on a home purchase, with closing scheduled within 60 days before program funds are disbursed.
  • Contribute at least $10,000 toward the home purchase (this can come from savings or gifted funds).
With the program expected to go live in May 2025, it’s important to get everything in order early. Here’s what you can do now:
 
  • Become a Sacramento Credit Union member (if you’re not one already).
  • Save or secure your $10,000 contribution.
  • Get pre-approved for a mortgage and start working with a trusted real estate agent to find your target area.
  • Meet with our Home Lending Team to explore if this program is right for you and how we can support your homebuying journey.

    
Act Fast!

Funds for this program are limited and go quickly. SCU’s goal is to help more members take advantage of this. We can’t wait to hear what FHLBank San Francisco has in store! Get ahead of the crowd and be ready to take advantage of this grant—talk to a member of our team today to start preparing.

*Please note the Middle-Income Downpayment Assistance Program guidelines are subject to change from previous years. 
 
  
 
   
 

Empowering Homeowners: A New Vision for Mortgage Insurance

  
This content is originally featured on CUInsight.com. You can view the original press release here. 
   

“We want to give borrowers more control.” These words from Mark Martella, Lending Manager at Sacramento Credit Union, reflect his commitment to helping credit union members save money on mortgage insurance (MI). Mark is focusing on California homeowners facing high mortgage insurance costs, which range from 0.46% to 1.50% of the loan amount annually*. For a $300,000 mortgage, this equates to $1,380 to $4,500 per year—or $115 to $375 per month—adding significant strain to monthly budgets already stretched by mortgage payments, property taxes, and other obligations.

Mortgage insurance has long been a challenge for homeowners. Required for buyers with less than a 20% down payment, its cost is determined by factors such as credit score, loan amount, property type, and debt-to-income ratio. Borrowers with credit scores below 740 or high debt-to-income ratios face even higher costs. Yet, the current system offers little flexibility to reduce premiums, even when borrowers improve their financial standing.

Through Mark efforts, Sacramento Credit Union is exploring a groundbreaking idea: allowing borrowers to modify or rewrite their mortgage insurance policies when their credit improves or their financial risk decreases. This initiative seeks to give homeowners greater control over their finances while aligning with the credit union’s philosophy of prioritizing member well-being.

The problem with mortgage insurance

 

Many homeowners share a common frustration: improving their credit scores or reducing their debt-to-income ratios does not result in lower mortgage insurance premiums. Unlike homeowner’s insurance, which can be adjusted at any time, mortgage insurance remains tied to the original terms of the loan. The only option for borrowers to reduce these costs is through a full loan refinance—a process that can cost thousands of dollars in fees and may lead to higher interest rates.

A bold solution

 

Mark’s proposal first gained attention at the california and nevada credit union leagues’ reach conference, where he suggested enabling borrowers to “refinance” or rewrite their mortgage insurance policies. The concept resonated with credit union peers and industry professionals, garnering interest from several large credit unions, including some with multi-billion-dollar portfolios.

Now, a growing coalition of credit unions is exploring a pilot program to bring this vision to life. The program focuses on portfolio loans, avoiding the complexities of involving major investors like fannie mae. starting with 25 credit unions across california and nevada, the initiative would allow borrowers to adjust their mortgage insurance policies based on improved financial circumstances, providing much-needed flexibility and savings.

A grassroots movement for change

 

This initiative exemplifies the grassroots spirit of credit unions. “what is more credit union than this?” mark asks. “this type of effort to help our members is exactly why we’re in business.” by advocating for financial fairness and prioritizing member needs, the program aligns with the core mission of credit unions.

To succeed, partnerships with mortgage insurance companies will be essential. Sacramento credit union plans to work with mi providers to highlight the mutual benefits of empowering homeowners, ultimately reshaping the financial landscape for millions of families. This collaboration could also positively impact both the credit union and mortgage insurance industries, demonstrating the power of shared goals.

What could be more credit union than that?