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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 16 June 2025 C O V E R S T O R Y "The path to homeownership usual- ly involves some time in rental housing," O'Shields adds. "It's important that we have high quality, affordable rental housing." Many prospective homeowners need to rent for some time in order to build up enough cash reserves to make the down payment and cover mortgage in- terest and the ongoing expenses (taxes, insurance, maintenance) of homeown- ership, O'Shields and Daivs said. Education Is Paramount R enting along the path to home- ownership is part of the planning process that is more important today than ever before, experts agree. "I'm a strong believer in home- ownership," said Alex Shekhtman, Founder of LBC Mortgage, a lender with non-qualified mortgages comprising 60% of its loans. "It's a great thing to buy a property for yourself or as an invest- ment, but I also believe not everyone should do it right away." Even with the significant homeown- ership challenges of today, people can still own a home if they prepare, Shek- htman said. "You start doing the things now [saving, education] that you need to do. You may not be able to buy today, but maybe you can in five years." During that time, the prospective homeowner can save for the down payment and other homeownership expenses, as well as learning about dif- ferent home affordability programs. However, many people don't take the time to investigate different programs designed to help with affordable housing, according to Shekhtman. He said he had the same concerns when he emigrated to this country from Ukraine in the late 1990s. With no knowledge of U.S. mortgages, his family thought the entire house payment needed to be made at once. It wasn't until they learned more about the financial systems in this country that they were able to buy a home. Many others in the market for the first time, be they im- migrants or native citizens, also have little knowledge of how the industry works and of the programs designed to help those who don't qualify for traditional mortgag- es, Shekhtman said. For example, FHA loans require a lower down payment, the money for which can come from a grant or other available affordable housing programs, Shekhtman explained. Beyond directing prospective homebuyers to programs like that, Shekhtman's company will also explain that, as a renter, a person is still effectively paying a mortgage, taxes, etc.—that of the landlord—the costs of which are all part of the monthly rental payment. The difference is that in buying a home, the owner builds equity rather than the landlord. "Our slogan is, everyone pays for a mortgage in the United States—you can pay for your own or somebody else's," Shekhtman said. Matt Schwartz, Co-Founder of the VA Loan Network, agreed. "We see a lot of stuff where veterans have been turned down, but our goal is to provide the best possible service and to educate [the prospective borrower while we do "Our slogan is, everyone pays for a mortgage in the United States—you can pay for your own or somebody else's." —Alex Shekhtman, Founder of LBC Mortgage, a lender with non-qualified mortgages comprising 60% of its loans. it. We cater to manual underwriting and lower credit scores." Doing that and working with avail- able programs can put vets (as well as other borrowers) into homes when they initially think they may not be able to qualify, according to Schwartz. Many vets have limited savings, but VA and other programs can help make up for that deficiency, according to Schwartz, adding that more people can afford homes than some articles might lead people to believe. "Planning is significantly more challenging and time-consuming than it used to be," Davis said. Prospective homeowners need to work with profes- sionals to make sure that their overall debt load is under control, that they are not living beyond their means, and that they have enough savings. "All of these, of course, are things that are extremely challenging," Davis said. Financial education is a prime ele- ment of virtually all affordable housing programs. FHLBanks and various mem- ber financial institutions have partnered with various entities to help prospective homeowners with financial literacy. "We require consumer counseling for anyone who receives our downpay- ment assistance," Shields said. "You have to be prepared for the maintenance and insurance costs. Property taxes are going up." Another consideration, touched on in some of the educational programs, is the eventual sale of the property. While some will sell to move to another (some- times more expensive) property, others will live in the affordable property for several years, with their heirs receiving the home. If there are multiple heirs, responsibility for the property after the owner's passing needs to be discussed, O'Shields said. This issue is becoming increasingly important as one of the ways homeowners are affording homes today is through multi-generational ac- quisitions, with several family members contributing to the purchase. "It's very easy for the title to get tan- gled if you have multiple heirs," O'Shields said. "This is another area that we have