Don’t Stop Believing: Homeownership May Be Closer Than You Think…

This week’s inspiration comes from Journey’s 1981 anthem Don’t Stop Believin’. For many first-time homebuyers, the song’s title captures both the challenge and the hope of entering today’s housing market. While the down payment has traditionally been viewed as the biggest hurdle, the reality in 2025 is different: the true obstacle is the monthly payment.

As noted in last week’s column, the return of no-down-payment programs has lowered one barrier to entry. Yet the recurring cost of carrying a mortgage—not the upfront cash—is what keeps many renters on the sidelines.

Consider a recent client of mine. Like countless first-time buyers, they had successfully saved enough for the minimum down payment. In fact, the funds required were comparable to the cost of moving into a new rental: first month’s rent, last month’s rent, and a security deposit. What stood in the way was not liquidity—it was the affordability of the monthly obligation.

Here’s where strategy matters. Many sellers today are quick to reduce asking prices, hoping to entice buyers. But I advised my client to take a different approach. On a $450,000 property, instead of chasing a lower sales price, we negotiated for a 3% seller concession to permanently buy down the interest rate.

The math is striking. A small reduction in sales price barely moves the monthly mortgage figure. But a concession applied to interest-rate buydowns produces immediate and lasting relief—often hundreds of dollars per month. That difference is tangible; it shifts affordability from theoretical to real. In my client’s case, the deal closed successfully, and they stepped into homeownership with a payment structure they could confidently manage.

This outcome underscores a broader truth in today’s market. Price cuts may grab headlines, but they don’t solve the pain point most buyers feel day to day. Affordability is not about the sticker price—it’s about the monthly check that leaves a household’s bank account. Rate buydowns, concessions, and creative structuring directly address this core anxiety.

For industry professionals—lenders, realtors, and builders alike—the lesson is clear. To unlock first-time buyer demand, we must pivot from price-driven conversations to payment-driven solutions. Every dollar in savings that lowers the recurring monthly cost builds confidence, expands eligibility, and reopens the path to ownership.

So, to the would-be buyers watching from the sidelines: don’t stop believing. The headlines may emphasize high rates and affordability challenges, but opportunities still exist for those willing to explore new strategies. With the right approach, homeownership may be closer than you think.