If you’ve been renting for years, the idea of owning your own home may feel like a distant dream. Perhaps you’ve thought about it but quickly brushed it off, thinking it’s out of reach. You’re not alone. Many renters feel the same fears, especially when it comes to the cost of buying a home. But here’s the truth: owning a home could be closer than you think, and those fears might be based on outdated myths.

The Fear: “I Can’t Afford a Down Payment”

One of the biggest concerns that renters face when thinking about buying a home is the cost of the down payment. According to a recent survey by LendingTree, 65% of renters who want to own their home believe that the cost of a down payment is holding them back. It’s easy to see why—down payment myths can be scary and intimidating. Many people still think they need 20% of the home’s value saved up to even have a chance at owning a house. But what if we told you that this is just a myth?

The Myth: You Need 20% Down

The 20% down payment myth is one of the biggest misconceptions that keeps renters stuck. It’s true that a larger down payment can save you money on mortgage insurance and lower your monthly payments. But the reality is that most first-time homebuyers don’t need to put down nearly that much. There are plenty of loan options that require significantly less, meaning you could become a homeowner with as little as 3% or even zero down.

The Opportunity: Low Down Payment Options

If you’ve been dreaming of owning a home, it’s time to reconsider the reality of down payments. There are several mortgage programs designed to help renters become homeowners without needing to drain their entire savings. Here are a few low down payment options that might be right for you:

• FHA Loans: With a down payment as low as 3.5%, FHA loans are designed to help first-time buyers with less-than-perfect credit make the leap into homeownership.
• Conventional Loans: Many conventional loans also offer down payment options as low as 3%, especially for first-time homebuyers.
• VA Loans: If you’re a veteran or an active-duty service member, a VA loan offers 0% down payment options and can be an incredible benefit when transitioning from renting to owning.

Introducing the ML Mortgage Home 100 Program

One of the most exciting programs available right now is the ML Mortgage Home 100 Program. Imagine getting into your first home without worrying about a huge down payment or closing costs. The Home 100 Program offers 5% forgivable down payment and closing cost assistance, which can make all the difference for renters who feel that cost is the biggest barrier to homeownership.

This program is designed to take away the stress of coming up with a massive sum of money upfront. It’s an opportunity to take that dream of homeownership and make it a reality without feeling financially burdened. If you’ve been renting and wanting to break into owning your home, this is your chance to do it—without the barriers that many fear.

The Benefits of Owning Your Home

Why make the leap from renting to owning? Owning your home is more than just having a place to call your own. It’s about building equity, gaining stability, and creating a space that’s uniquely yours. When you own, you invest in your future—not someone else’s. You gain the ability to make improvements, decorate as you like, and enjoy the pride of ownership.

Plus, owning your home can be a powerful tool for long-term wealth building. Every mortgage payment you make is an investment in your future, building equity that can benefit you financially down the road.

Ready to Take the Next Step?

It’s time to stop letting myths and fears hold you back from achieving your dream of homeownership. At ML Mortgage, we’re here to guide you through the process, answer your questions, and help you discover the programs that are right for you—like our Home 100 Program.

Are you ready to start building your future? Contact Us Today to learn more about how we can help you transition from renting to owning, and take advantage of the exciting opportunities waiting for you.

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ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2024 ML Mortgage Corp. All rights reserved.

Being self-employed is rewarding—you have the freedom to be your own boss, set your schedule, and build something you’re passionate about. But when it comes to buying a home, many self-employed borrowers feel like the odds are stacked against them. The truth is, getting approved for a mortgage as a self-employed individual might require a different approach, but it’s absolutely within reach.

The Challenges for Self-Employed Borrowers

Many self-employed borrowers worry that they won’t qualify for a home loan because their income is seen as inconsistent or unpredictable by traditional lenders. Standard mortgages often require steady income documentation, such as W-2s and pay stubs—documents that don’t apply to most self-employed people. But rest assured, there are options available that cater specifically to the unique financial situations of entrepreneurs, freelancers, and small business owners.

Traditional vs. Non-Traditional Mortgages

Let’s break down the differences between traditional and non-traditional mortgage options available to self-employed borrowers:

• Traditional Mortgages: Conventional loans are available to self-employed borrowers, but they typically require two years of tax returns, proof of business stability, and other documentation. You’ll need to show consistent income and a solid financial track record. This is where many self-employed borrowers face difficulties, especially if they utilize deductions that reduce their taxable income.
• Non-QM (Non-Qualified Mortgage) Loans: Non-QM loans provide an alternative for those who may not fit the strict criteria of traditional loans. These mortgages are designed with flexibility in mind, and they allow self-employed borrowers to use bank statements, asset depletion, or other non-traditional forms of income verification to qualify. Non-QM loans are perfect if you have strong financial health but don’t necessarily show it in traditional ways.

Mortgage Options for Self-Employed Borrowers

If you’re self-employed and ready to buy a home, here are some mortgage options that might be a great fit for you:

1. Bank Statement Loans

Bank statement loans are an excellent option for self-employed borrowers who can’t provide W-2s or pay stubs. With these loans, lenders assess your income based on your bank statements—typically 12 to 24 months’ worth. This option allows you to show your real cash flow without the limitations of tax deductions that often reduce taxable income.

2. Asset Depletion Loans

If you have significant assets but limited monthly income, an asset depletion loan could be ideal for you. Lenders use the value of your assets to determine your ability to repay the loan. This means that savings, retirement funds, and investments can be used to qualify, allowing you to leverage your wealth in a different way.

3. Stated Income Loans

Stated income loans were once common and are making a comeback in the non-QM space. These loans are based on the income you report rather than verifying every detail through tax returns. While these loans come with higher interest rates, they provide flexibility for borrowers with unconventional income streams.

4. Conventional Loans with Proper Documentation

For those who have consistent income and can provide the necessary documentation, conventional loans remain an option. You’ll need to provide two years of tax returns, profit and loss statements, and other documents to demonstrate income stability. If you can meet these requirements, a conventional loan might be a great choice, especially if you’re looking for competitive interest rates.

Introducing the ML Mortgage Self-Employed Solutions

At ML Mortgage, we understand the unique challenges that self-employed borrowers face. That’s why we offer tailored solutions that work with your financial situation rather than against it. Whether you’re looking for a bank statement loan or a non-QM loan that allows you to use your assets to qualify, we’re here to help you find the best fit.

Our team is experienced in working with entrepreneurs, freelancers, and small business owners—helping you overcome obstacles and get into the home of your dreams. We know how hard you’ve worked to build your business, and we believe buying a home should be just as rewarding.

Benefits of Non-Traditional Mortgages for Self-Employed Borrowers

• Flexible Qualification: Non-traditional mortgages, like non-QM loans, offer flexibility in how income is documented, making it easier for those with fluctuating income to qualify.
• Customized Options: With ML Mortgage, you get customized mortgage solutions designed specifically for self-employed borrowers, giving you access to loans that are perfectly suited to your needs.
• Focus on Real Financial Health: These loans consider your true financial health—not just what’s reflected on your tax returns. This can be especially beneficial if you take advantage of tax deductions that reduce your taxable income.

Ready to Make Homeownership a Reality?

Don’t let the fear of qualifying for a mortgage stop you from owning the home you deserve. At ML Mortgage, we’re committed to helping self-employed borrowers explore their options and find the right loan for their needs. Whether you need a bank statement loan, a non-QM mortgage, or simply expert advice, we’re here to support you every step of the way.

Take the next step today—Contact Us Now to learn more about how we can help you achieve your dream of homeownership, even if your income doesn’t fit the traditional mold.

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ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2024 ML Mortgage Corp. All rights reserved.

Thinking about buying or selling a home in 2025? The future looks promising for both buyers
and sellers, and we’re here to help you navigate it with ease and confidence. Experts predict
some hopeful changes in mortgage rates and home prices—two major factors that could directly
impact your decision. Here’s a breakdown of what to expect and how it could shape your next
move.

Mortgage Rates Expected to Drop – More Affordable Homes Are on the Way!

If you’ve been feeling the pinch of high mortgage rates, we’ve got some good news. Experts
forecast that mortgage rates will take a gentle dip throughout 2025. While this drop may not be a
dramatic plunge, the overall trend is expected to bring relief to buyers and even inspire sellers to
re-enter the market.

What does this mean for you? Lower mortgage rates lead to lower monthly payments, which
makes homeownership more affordable. You’ll have more flexibility in your budget and can
explore more options within your price range. This boost in affordability could be the nudge you
need to jump back into the housing market.

As Charlie Dougherty, Director and Senior Economist at Wells Fargo, says, “Lower financing
costs will likely boost demand by pulling affordability-crunched buyers off the sidelines.” If
you’re ready to buy, moving forward now could help you beat the crowd of buyers expected to
re-enter the market as rates decline. Remember, it’s all about timing—lean on your agent to help
you strategize.

Home Prices Will Rise Gently – A Market That’s Easier to Navigate

Now, let’s talk about home prices. Unlike the rapid growth we’ve seen in recent years, experts
anticipate a more moderate price increase of around 2.5% nationally in 2025. This shift reflects a
healthier, more balanced housing market.

Why the steady increase? As rates decrease, demand for homes will rise, bringing more buyers
into the market. At the same time, sellers who’ve felt “rate-locked” in recent years may finally
feel motivated to list their properties, adding more options for buyers. Increased inventory will
help keep prices from skyrocketing, which is fantastic news for first-time homebuyers and those
looking to upgrade.

However, keep in mind that price trends vary by region. Some areas may see a faster increase,
while others could experience slower growth or even slight dips. As Lance Lambert, Co-Founder
of ResiClub, points out, “Even if the national forecast for 2025 is accurate, some regional housing markets could see mild home price declines, while others could still see higher-than-
average appreciation.”

This is why it’s essential to have a knowledgeable real estate professional by your side. They can
give you insights into your local market’s unique trends, so you feel confident whether you’re
buying, selling, or both.

What Do These Market Shifts Mean for You?

With mortgage rates easing and home prices growing at a more reasonable pace, 2025 offers
opportunities for both buyers and sellers to reach their goals. Here’s the takeaway:
For Buyers: The anticipated drop in mortgage rates could mean more homes within your
reach. With competition expected to rise as affordability improves, acting early can help
you get ahead.
For Sellers: A larger pool of buyers, thanks to lower mortgage rates, can give you more
leverage. Listing your home in a market that’s expected to gain traction may increase
your chances of a successful sale.

Don’t leave these opportunities to chance. By working closely with your real estate and
mortgage professionals, you’ll stay prepared to make the most of these shifting market dynamics.
Bottom Line: Plan Now, Thrive in 2025

The housing market in 2025 looks brighter, with trends that create advantages for buyers and
sellers alike. Whether you’re curious about buying a first home or considering selling, now’s the
time to connect with an expert who can help you map out your plan.
Let’s work together to find the right path for you in this exciting year ahead.

——————-
ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312,
licensed by the CA Department of Financial Protection and Innovation under the
Finance Lenders Law, License #60DBO69831. For other states, visit
www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All
loans are subject to credit approval and acceptable collateral. Additional terms
and conditions apply. Programs, rates, terms, and conditions may change
without notice. Not all programs are available in all states. There is no guarantee
that all borrowers will qualify. Restrictions may apply. This is not a commitment to
lend. © 2024 ML Mortgage Corp. All rights reserved.

The U.S. real estate market has been challenging since the pandemic started. Homebuyers have struggled to find affordable homes. During COVID-19, low mortgage rates were common, but home prices surged due to limited supply and high demand. As rates increased post-pandemic, homebuying became even more difficult. However, recent drops in mortgage rates bring a glimmer of hope for potential buyers.

Lower Mortgage Rates: A Mixed Blessing

Mortgage rates have started to decline, offering hope to many buyers. This shift could make it easier to buy a house. However, reduced rates might also bring challenges. The falling rates can increase demand, leading to a rise in homebuyer competition.

Higher Demand, Higher Prices

When rates drop, many buyers rush to take advantage. However, as more buyers enter the market, prices could rise. This increased demand may offset the savings from lower mortgage rates.

“Homebuyer competition will rise as mortgage rates fall,” warns real estate broker Sean Adu-Gyamfi. “Many buyers regret missing out on the low rates during the pandemic. They won’t want to miss another chance.”

Buyers waiting for lower rates may find themselves in bidding wars, competing with others who are also ready to buy a house. Unfortunately, if the housing supply remains limited, prices could continue to climb.

Inventory May Not Rise Fast Enough

While lower mortgage rates can motivate more buyers, housing supply may not keep up. The U.S. Department of Housing and Urban Development reported that construction of new homes dropped by 14.8% in July 2024. Although the supply of existing homes increased, it’s still below the level needed for steady price growth.

Could Lower Rates Increase Inventory?

Lower mortgage rates might do more than create new buyers. They could also motivate homeowners to sell. Many owners secured low rates during the pandemic and have hesitated to move due to higher borrowing costs. But if rates continue to fall, more homes might hit the market.

According to mortgage advisor Beverly Hankinson, lower rates could push homeowners to upgrade or relocate. This could increase inventory and help balance out the rising demand. However, the market is unpredictable, and it’s unclear whether supply will meet demand.

How to Prepare for the Market Shift

With uncertainty around both demand and supply, buyers need to be ready. Getting finances in order is key. Here are a few steps to take now:

• Set a budget.
• Get pre-approved for a mortgage.
• Research local homes to understand what’s available.

The Bottom Line

The time to buy a house is when you’re financially prepared. You can act now and refinance if rates drop further. Alternatively, you can wait for rates to fall, ensuring you’re ready with a competitive offer.

Either way, the goal is to buy a home you love without overextending your budget.

The real estate market has presented difficulties for many homebuyers, and many buyers are wondering what would happen after a rate cut. High mortgage rates and low housing inventory have made it hard for people to buy a house. These high costs have caused many potential buyers to delay their dreams of homeownership.

Thankfully, some economic changes may bring relief. Inflation has decreased, and the job market has slowed. As a result, the Federal Reserve is expected to cut rates soon. These changes could lower mortgage rates and make it easier to buy a home.

What to Expect with Rate Cuts

The Federal Reserve’s rate cuts could reduce mortgage rates, benefiting potential homebuyers. If rates drop, borrowing costs will become more manageable. Understanding how these rate cuts may impact a $600,000 mortgage is important for those looking to take advantage of lower mortgage rates.

Current Mortgage Payments for $600,000 Loan

At present, the average rate for a 30-year fixed mortgage is 6.41%, while a 15-year fixed mortgage is 5.78%. Assuming a 20% down payment of $120,000, here’s what monthly payments would look like for principal and interest:

• 15-year mortgage at 5.78%: $3,993.68 per month
• 30-year mortgage at 6.41%: $3,005.57 per month

These estimates do not include property taxes or homeowner’s insurance, which may vary based on location.

Impact of a 0.25% Rate Cut

If the Federal Reserve cuts rates by 0.25%, mortgage rates may also drop by a similar amount. Here’s how that could affect monthly payments:

• 15-year mortgage at 5.53%: $3,929.65 per month
• 30-year mortgage at 6.16%: $2,927.40 per month

This means a savings of $64 per month on a 15-year mortgage or $78 per month on a 30-year mortgage.

Impact of a 0.50% Rate Cut

If multiple rate cuts lead to a 0.50% reduction in mortgage rates, the savings become more significant:

• 15-year mortgage at 5.28%: $3,866.19 per month
• 30-year mortgage at 5.91%: $2,850.13 per month

Borrowers could save $127 per month on a 15-year loan or $155 per month on a 30-year loan.

Should You Wait for Lower Rates?

The idea of waiting for lower rates can be tempting, but it’s important to consider several factors.

• Monthly payments: Lower rates reduce monthly costs, making homeownership more affordable.
• Buying power: With lower rates, you might afford a more expensive house while keeping payments manageable.
• Increased competition: More buyers enter the market when rates drop, possibly leading to bidding wars.
• Rising home prices: Lower rates can cause home prices to rise due to increased demand.
• Uncertain timing: Waiting for rate cuts is risky, as the timing of rate changes is unpredictable.
• Opportunity cost: If you continue renting, you lose out on building home equity.

The Bottom Line

A rate cut may save you between $64 and $155 per month on a $600,000 mortgage. Whether you buy now or wait for lower mortgage rates depends on your financial situation. If you can afford current payments, it might be wise to act. However, if even a small rate cut makes a significant difference, waiting could be a better choice.

Ultimately, being financially prepared is key to making the right decision when buying a house.

All quoted rates/payments are based on OptimalBlue’s © pricing engine from 9/13/2024.
They are based on averages and are in no way guaranteed; your rate/payment may be
different. This is not a commitment to lend.