10 Answers to Common Questions from Real Estate Agents: Empowering Your Clients with Smart Mortgage Strategies

As a mortgage professional at First Capital Mortgage Inc., I collaborate with real estate agents who are committed to delivering great outcomes for their clients.
Below are clear, practical answers to the questions I'm hearing most often right now - so you can guide buyers and sellers with confidence.

1. Seller Concessions: How to Best Use Them

Seller concessions can be a game-changer in negotiations. They help buyers close with less cash out of pocket while keeping sellers competitive.
The key is choosing the right structure for the buyer's timeline and goals.

2-1 Buydowns

A 2-1 buydown can be ideal for clients who reasonably expect their income or cash flow to improve in the near future, such as:

• "My spouse will graduate from college next year and start a new career."
• "I expect a solid promotion within the next year or two."
• "Both of our cars will be paid off in the next 18 months."

This approach temporarily reduces the effective rate (and payment) for the first two years - giving buyers breathing room while their financial picture strengthens.

Permanent Buydowns

A permanent buydown lowers the rate for the life of the loan. It's a strong fit for buyers who value long-term payment stability and want to reduce payment risk.

Lower Purchase Price vs. Credits

• Lower price can mean smaller payments and a lower property tax bill.
• Credits often help more immediately by reducing cash needed to close - so buyers can purchase sooner and keep reserves intact.

If you want, send me a scenario and I'll run side-by-side options (price reduction vs. credits vs. buydown) so you can advise with clarity.

2. Builder Incentives

Builder incentives often operate like seller concessions, with a few extra considerations.

• Same core strategies apply: credits, buydowns, and closing cost coverage can all be effective.
• The credits are real: builders use incentives to protect sales pace and pricing.
• Appraisal reality: once a home is lived in, the market compares it to surrounding resale neighborhoods - so we want incentives structured cleanly.
• APR clarity: APR is a recalculation of the interest rate plus certain required finance charges over time; not all costs (like title/escrow) are included because they apply whether or not there is a loan.

If your client is looking at new construction, I'm happy to review the builder's incentives and confirm how they impact payment, cash to close, and long-term value.

3. First-Time Home Buyers

First-time buyers often have more options than they expect - especially if we take the time to match the right program to the right borrower.

• Low and no-down payment programs: many buyers qualify for one or more options.
• Full pre-approval matters: some programs require detailed documentation - so don't wait. The sooner we review, the stronger the offer strategy becomes.
• Resource: You can find my first-time buyer articles on the blog page here.

4. Simple Stories: Lessons from the Market

Every agent knows someone who could have purchased a few years ago - but didn't - often from FEAR (False Evidence Appearing Real).
Now they look back and see equity they could have built, while rent payments kept rising.

Over long time periods, rates go up and down - but home values have historically trended upward. If you have a story like this from your clients,
I'd genuinely love to hear it - those real examples help other buyers make better decisions.

5. Buy Now, Refi Later

This strategy repeats across market cycles: buy when the payment and budget work today, then refinance if and when rates provide a clear benefit later.
The buyers who win are usually positioned early - so they can move when the numbers line up.

6. Assumable Loans

• Yes, they exist: mainly VA and FHA loans (in certain situations).
• Not always simple: assumptions can take time and require detailed review/approval.
• Equity is the sticking point: most sellers want their equity now to fund their next move.

Real example: I saw a buyer offer to pay down the VA loan so the seller could qualify for their next purchase and still receive equity at closing.
The veteran seller declined because they didn't want potential ongoing liability with a non-veteran buyer. These deals can work - but the structure matters.

7. Non-QM, DSCR, Bank Statement, and P&L-Only Loans

These alternative qualifying programs can be excellent for self-employed borrowers whose tax returns don't reflect their true cash flow.

• Bank statement programs may use deposits to determine qualifying income.
• P&L-only options can help when tax returns aren't usable for standard qualifying.
• DSCR loans can be ideal for investors when the property's cash flow supports the payment.

If you're working with a self-employed buyer or investor, send them my way early - these loans are powerful when structured correctly.

8. Affordability: Innovative Solutions

With affordability still tight, there are more "toolbox" solutions available than most buyers realize:

• 40-year mortgages (availability depends on program and scenario)
• Interest-only options (helpful in specific situations)
• 50-year mortgages are being discussed in the broader market - useful to understand the pros/cons before assuming it's a fit

These aren't one-size-fits-all solutions, but they can open doors when used intentionally.

9. Where Are Rates Going?

The honest answer: no one knows with certainty. But we can control preparation.
If rates improve, well-prepared buyers can refinance quickly. If rates stay elevated, the right strategy (credits, buydowns, program selection, and clean pre-approval)
can still put clients in contract and keep deals together.

10. What Is the Best Loan for You, Your Family, Friends, or Clients?

Every loan type has strengths and trade-offs. The only reliable way to determine the best fit is a full pre-approval and a strategy conversation.
I'll review all available options and help select the best one for the borrower's situation and timeline.