How to Overcome Affordability Challenges in Today’s Housing Market

If you’ve been paying attention to the housing market in the Greater Lansing area, you’ve probably noticed one thing—prices are up. According to the latest data, the average home price in the Greater Lansing area is now just over $253,000, up almost 4% year to date In some areas, even double digit growth. We are still in a seller's market with a low amount of home inventory available to buyers.  

So if you’re a first-time homebuyer (or even a move-up buyer), you might be wondering: Is it even possible to afford a home right now? The answer is YES—with the right strategy.

Let’s break down some smart, creative ways buyers are making homeownership work, even in today’s market:

1. Buy Down Your Interest Rate

Mortgage rates have been hovering around 6.5% lately, and while that’s lower than last year’s peak, it can still feel like a lot. One option? Ask your lender about a temporary or permanent interest rate buydown. For example, a 2-1 buydown lowers your interest rate by 2% the first year, 1% the second year, and then adjusts to your original rate in year three. This helps lower your monthly payment when you're just getting started. This can save you hundreds of dollars per month in your mortgage payment. 

2. Ask the Seller to Cover Some Closing Costs

In certain situations—especially when a home has been sitting on the market a bit longer—you might be able to negotiate for the seller to pay part of your closing costs. That could mean saving thousands up front and freeing up cash for things like home repairs, furniture, or that first mortgage payment. I help my buyers do this all the time, and it’s more common than you think!

3. Look Into Assumable Mortgages

Some homeowners have mortgages locked in at ultra-low interest rates (think 2.5%-3%)—and those loans might be assumable, meaning you can take over the loan and interest rate when buying the home. Not every loan qualifies, and there are rules, but it’s a creative way to save big if the seller is open to it.

4. Down Payment Assistance Is Out There

If saving up for a down payment is your biggest hurdle, you’re not alone. Michigan offers several assistance programs to help, including:

• MSHDA’s $10K DPA Program: Up to $10,000 in down payment help for eligible buyers in select areas.

• First-Generation Homebuyer Program: Offering $25,000 in assistance to buyers who qualify based on family history and income. This one came and went fast, but there are many homebuyer programs out there most people don't even know about.  

These programs can be game-changers.  

5. Creative Financing Options

Don’t assume the traditional 30-year mortgage is your only option. There are adjustable-rate mortgages (ARMs) that start with a lower fixed rate for 5 or 7 years, which might make sense if you plan to move or refinance within that time. Also, grant programs, local credit unions, and community lending programs often have competitive terms or flexible credit requirements.

6. Work With an Experienced Agent Who Knows the Market

Affordability isn’t just about price—it’s about strategy. From knowing which sellers are open to concessions, to guiding you through financing options, to helping you find off-market or pre-market deals, a good agent makes a big difference. I help buyers every day who are surprised by what they can afford with a little creativity and support.

Bottom Line:

The market may be challenging—but it's not impossible. There are lots of ways to make homeownership work for you, even with rising prices and interest rates.

If you're thinking about buying and aren’t sure where to start, reach out! I’m happy to walk you through your options, connect you with a great lender, and help you build a smart game plan for buying your next home.