Orion’s brokers know that their clients don’t need a 20 percent down payment to buy a home. Our brokers also know that a down payment is one of the largest obstacles to otherwise eligible home buyers. Consumers are using credit and financing in new and different ways to navigate their financial lives. Many consumers prefer to have more savings when they buy even at the expensive of home equity. 0%down can be a good option for some buyers that have reserves.

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The first thing Orion’s AEs hear their brokers explain to borrowers is that, when looking at resources, there are really two different types of home buying assistance: grants to help with a down payment or closing costs, and programs that give you an actual discount on the property or loan. Many consumers do not know what options exist for mortgage products or assistance. Orion is hearing more and more about tradeoffs between home equity versus liquidity. More data should also be helpful as we look at credit risk and collateral value in the future. The models are improving. And we will educate our clients regarding down payment assistance programs so that you can discuss them with your home buyers.

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One explanation why first-time homebuyers are not finding homes is thought to be the competitive landscape. Lack of supply, combined with increased participation from cash and iBuyers, means fewer options for first-time homebuyers. As we move into2025, bidding wars are common in some markets, at some price levels. It could mean more cash and iBuyers winning homes outright or before financed offers could jump in. Some markets are slowing overall but would be interesting to see how shifts in the industry change indicators like this.

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On the other hand, Orion’s management believes that it could mean that with the flattening of mortgage rates that home values are normalizing. “Right priced” properties do not need to be bid up. As data sources increase, one wonders if easier access to real estate data will improve competitive or quashit. For instance, fewer bidding wars could mean more accurate pricing, or it could mean that computers bid on properties so quickly that financed buyers missed out altogether. How can a buyer compete with an investor’s supercomputer?

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This trend will be one to watch for anyone focused on housing demand or real estate market data. Orion has many programs where buyers are only required to put down 10 or 5 percent, or even less. And through it all, Orion’s AEs continue to be there for our broker clients!

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