Orion’s brokers work with borrowers every day, tailoring solutions to help them either buy a home or refinance to pay off other debt. Yes, business is down, but people still need a place to live and help in avoiding high interest rate debt. Sure, there’s a sense of gaining economic wealth, permanency, a roof over their heads. But how can brokers add value to individuals and families versus potential clients merely searching for financing on the internet?

One way is through educating your clients about DPAs. Down Payment Assistance programs come in the form of grants, loans, and other programs. It's typically reserved for first-time home buyers only. They can be run by a variety of organizations, such as local or state housing authorities, or by a nonprofit. Eligibility is determined by your client’s household income and credit history, varying by state and program. Information and programs vary by state. Good starting points include HUD, Fannie Mae, and Freddie Mac.

Brokers educating clients about these programs can indeed make a difference. Until recently mortgage lenders point to three primary market factors driving the lack of affordability in housing and the continuation of the homeownership gap: an insufficient supply of affordable homes for sale, high home price appreciation, and high rates. More inventory has come onto the market in the summer and autumn of 2022. Given the higher rates, lenders most frequently cited down-payment assistance programs (DPAs) and low down-payment mortgage products as the best ways to help affordability and close the homeownership gap. Orion offers our brokers these products.

Orion is currently taking steps to help affordability and close the homeownership gap between various demographics. We encourage our brokers to promote low down-payment mortgages as a viable solution to clients, along with offering pre-purchase homeownership education and credit-building programs.

Brokers tell Orion’s AEs that it one thing for the Biden Administration, or any presidential administration, to state that affordable housing or first-time home buyers area priority. Carrying that out, however, is incredibly problematic. Using DPAs and high LTV programs is fine, but when builders are grappling with escalating building costs, high permit fees, and a lack of skilled labor, not to mention neighborhood efforts to keep some of these developments out of their areas, things can break down.

Orion offers its broker several programs that can help first-time home buyer clients. Just ask your AE! As noted above, we can’t sugarcoat business being down, but people still need a place to live and help in avoiding high interest rate debt, and our brokers are helping with both.