How To Conquer Those First-Time Home Buying Struggles

Blog posted On March 22, 2024

Buying your first home is an exciting milestone, but it can also be overwhelming, especially in today's real estate market. With high mortgage rates, soaring home prices, and limited inventory, first-time home buyers face unique challenges. However, with the right strategies, you can navigate these hurdles and achieve your dream of homeownership. In this guide, we'll explore the challenges first-time buyers are facing, and the options available to overcome these obstacles.

Where The Market Currently Stands

While specific market conditions vary by region, a semblance of stability remains with pockets of growth and challenges. Mortgage rates have experienced fluctuations, with recent trends pointing towards a gradual increase, impacting affordability for prospective home buyers. High home prices persist in many areas, fueled by high demand and limited inventory, posing additional concerns for first-time buyers.

What Challenges Are First-Time Home Buyers Facing?

?      High Mortgage Rates: Mortgage rates have been on the rise, making borrowing more expensive for home buyers. Higher interest rates can significantly impact monthly mortgage payments and overall affordability, especially for buyers with limited budgets.

?      High Home Prices: Across many regions, home prices have surged, outpacing income growth and making it difficult for first-time buyers to enter the market. Affordability concerns arise as potential buyers struggle to find properties within their budget range.

?      Limited Home Inventory: Low inventory levels heavily increase competition among buyers, leading to bidding wars and even higher prices. First-time buyers often face challenges in finding suitable properties within their desired location and price range without being outbid.

What Options Are Available To Combat First-Time Home Buyer Challenges?

Despite these challenges, the market remains resilient, supported by innovative financing options, government initiatives, and the enduring aspiration for homeownership among Americans. Here are some great options for help when treading through those first-time home buying waters:

Down Payment Assistance

Many state and local governments offer down payment assistance (DPA) programs to help first-time buyers cover a portion of their down payment and/or closing costs. Many of them even allow as little as zero percent down! These programs vary in eligibility requirements and assistance amounts, so it's essential to research options available in your area.

Temporary Buydowns

Temporary buydown programs allow buyers to lower their initial mortgage payments by paying additional upfront fees or points. This can provide short-term relief for buyers concerned about high mortgage rates, making homeownership more accessible in those early stages.


HomeFundIt by CMG Home Loans individuals to get contributions from friends, family, and other supporters vis credit or debit card to help fund their down payment or closing costs. In addition, HomeFundIt offers a $2,000* matching grant for first-time home buyers to use toward closing costs. This innovative approach to financing can supplement savings and increase purchasing power for first-time buyers.

Homeownership May Be Closer Than You Think!

While the current real estate market presents challenges for first-time homebuyers, it's essential to remain proactive and explore available options. With an experienced lending team on your side, you can leverage down payment assistance programs, temporary buydowns, and platforms like HomeFundIt to increase your chances of achieving your home buying dreams.

* Grant is a $2-to-$1 match on regular down payment gifts received on HomeFundIt™, up to the lesser of $2,000 or 1% of purchase price for first time buyers, as defined by Fannie Mae, who complete homebuyer education prior to signing a purchase contract. Talk to your loan officer or visit your HomeFundIt dashboard for next steps, or you can also find a housing counselor near you by visiting

Grant funds are applied to nonrecurring closing costs. If closing costs are fully paid by seller or interested party, grant funds can be used to buy down the rate. Grant funds cannot be used towards a down payment. Visit for complete terms and conditions.