The Loan Originators helping first-time buyers in 2026 are not relying on a better mortgage rate to solve every affordability problem.
During the latest NMP Ignite webinar, three originators shared distinct approaches to getting buyers to the closing table, from structuring seller concessions and buydowns to identifying local assistance programs and helping borrowers address credit problems.
Andrew Johnson of West Capital Lending, Samir Dedhia of SD Capital Funding, and Shane Ouimet of Better Rate Mortgage discussed their strategies Tuesday during Ignite's “Navigating The Rate Environment: Helping First-Time Buyers,” sponsored by MaxClass.
Johnson focused on low-down-payment options, seller concessions, and real estate agent relationships. Dedhia discussed monthly-payment strategies, reserves, buydowns, and multifamily ownership. Ouimet detailed his use of local down payment assistance, credit coaching, USDA, and FHA financing.
Although they work in different markets, each returned to the same premise: First-time buyers are not necessarily difficult borrowers. They need an originator who can translate affordability into payments, upfront costs, and financing options they understand.
An informal poll conducted during the webinar found that most respondents said first-time buyers accounted for between 10% and 90% of their business, with the largest group placing the share between 10% and 50%. Asked what they valued about working with those borrowers, attendees repeatedly cited the opportunity to educate them, build their confidence, and share their excitement when they purchase their first home.
“I believe that first-time buyers are actually the easier ones to work with,” Ouimet said. “They’re interested in learning, and they’re excited about learning.”
Johnson agreed that the industry often misreads buyers who have never been through a mortgage transaction.
“We talk payments. We talk cash to close,” Johnson said. “The industry probably thinks they’re more difficult to work with, and I think it’s the opposite.”
Turning Seller Concessions Into Buying Power
Johnson has built his business in Northern Michigan through real estate agent relationships, local radio, social media, and referrals from previous buyers.
When he returned to the Tawas area and began originating through the broker channel, he found a market dominated by banks, credit unions, and large online lenders. Many buyers were unfamiliar with mortgage brokers and still assumed purchasing a home required 20% down.
Johnson began educating buyers and real estate agents about 3% down conventional financing, FHA loans, USDA loans, and down payment assistance. The message spread as he closed more first-time buyer loans.
“Without talking about it, you’re not going to get your foot in the door,” Johnson said. “Then, after you close that first loan, everybody in the transaction knows you’re the pro at helping first-time homebuyers.”
Identifying the loan program is only part of his strategy. Johnson also works with buyers and their agents to structure offers around the amount of cash the borrower has available.
For a buyer with limited savings, that could mean offering slightly more for a property while requesting seller concessions, provided the transaction and appraisal support it. The concessions can help cover closing costs and reduce the amount the borrower must bring to the table without adding substantially to the monthly payment.
“Many buyers think that they’re winning with a lower sales price, but it’s quite the opposite,” Johnson said. “If you offer a little bit higher and ask for the concessions back, that’s where you’re going to be able to use the money that you have to get into the house.”
Johnson begins those conversations by asking what buyers want in a home and where they want to live. He moves into qualifications and numbers after understanding their goals.
That approach allows him to show buyers what may be possible before presenting a list of loan terms. It also gives real estate agents a clearer strategy for writing the offer.
Johnson’s partnership strategy extends into the loan process. He works alongside his wife, who handles processing, allowing them to guide borrowers together from approval through closing.
“We work side by side,” Johnson said. “She does the processing side, and we come at it as a team.”
That communication becomes especially valuable for buyers who have never navigated a mortgage. Johnson said first-time buyers are generally more excited than apprehensive when they have been prepared for each step.
“If you ever want to hang out with someone who is genuinely excited, go to a closing table with a first-time homebuyer,” he said. “It’s just nothing but joy.”
Making The Mortgage Fit The Financial Plan
Dedhia approaches first-time buyers from a financial-planning perspective.
He begins with the buyer’s goals and comfortable monthly payment, then works backward to evaluate the mortgage structure.
“Most people talk about rates. I talk about monthly payment,” Dedhia said. “Most people talk about closing costs. I talk about leveraging your closing costs.”
That could mean comparing a standard 30-year fixed mortgage with temporary buydowns or examining whether lender or seller credits could reduce the buyer’s upfront expenses. Dedhia presents the options and their break-even points rather than assuming one structure will be right for every borrower.
“The borrower has to be comfortable with the payment,” he said. “If it feels strange, scale it back.”
Dedhia also encourages buyers to view the mortgage within their broader financial plans instead of treating it only as a liability.
Someone with enough money to make a 20% down payment, for example, might compare that option with putting down 3%, 5%, or 10% and retaining more cash for repairs, emergencies, or other investments.
Dedhia generally recommends keeping six to eight months of reserves available, and potentially as much as 12 months.
“Really leveraging the mortgage to ensure that they have reserves is the angle that I use with my clients,” he said.
Some buyers assume conventional financing requires 20% down or that private mortgage insurance will make a lower-down-payment loan prohibitively expensive. Dedhia shows them the cost of different down payment options rather than allowing those assumptions to dictate the decision.
For a well-qualified borrower, he said, monthly private mortgage insurance could be closer to $80 or $90 than the $200 to $400 some buyers expect. That comparison may help a borrower determine whether preserving cash is worth the additional monthly cost.
For other buyers, the long-term calculation may include a two- or three-unit property. Dedhia avoids immediately introducing the term “house hacking,” which he said may overwhelm an inexperienced buyer. Instead, he shows how rental income from additional units could change the household’s monthly housing expense.
“I think ‘house hacking’ may feel a little overwhelming for them,” Dedhia said. “But you can show them the opportunity of owning a multifamily and renting those units out.”
The option will not fit someone who wants a single-family home or does not want to live near tenants. Dedhia said the originator must understand the borrower’s goals before proposing the strategy.
“When you break down the math and simplify the numbers, and don’t talk about mortgage rates and jargon, you can show them what they’re paying in rent today and what the other options look like,” he said.
That requires originators to move away from what Dedhia described as the industry’s continuing tendency to lead with rates.
“A lot of people in the industry are still order takers and quote rates instead of actually being their partner, their adviser, their coach — really all in one,” Dedhia said.
Finding Assistance Buyers Do Not Know Exists
Ouimet works between Toledo and Detroit, where city and state down payment assistance programs can materially change what some buyers can afford.
He regularly works with initiatives offering up to $25,000 for eligible Detroit buyers and $12,000 for eligible buyers in Toledo.
Ouimet determines early how much money the borrower has available. Someone with $30,000 in savings may not need the same assistance as a buyer entering the process with only $3,000.
“One of the first things that I do with everybody, before I take an application, is have a personal phone call and get an idea of what their situation is,” Ouimet said.
Because assistance programs and eligibility requirements change, he said originators must continually research what is available in their markets. Borrowers sometimes ask about programs offered only by a particular bank or within a designated geographic area.
“There’s always something,” Ouimet said. “There are endless options for them.”
Credit is another part of his first-time buyer work. Ouimet reviews reports to determine whether a relatively simple action could improve the borrower’s eligibility.
Resolving a collection and completing a rapid rescore may help one buyer, while someone with multiple late payments or more extensive credit problems may need assistance from a credit repair specialist.
“If it’s collections and it’s a reasonable dollar amount for them to spend, I’m going to suggest paying off those collections and doing a rescore,” Ouimet said. “If it’s more late payments and things like that, then I’m going to refer them to an actual credit repair agency.”
For buyers outside Toledo, Ouimet frequently considers USDA financing. Its zero-down feature and competitive rates can help cash-constrained borrowers, but the loans also require extensive documentation and an additional government approval.
“You really need 45 to 60 days for the process, and that’s always a hard sell, especially in today’s market, where everybody expects to close in two and a half weeks,” Ouimet said.
Explaining that timeline early helps the buyer and both sides of the transaction understand what the loan will require.
Ouimet also identified FHA financing as one of the most useful, yet misunderstood, options available to first-time buyers because of its low down payment and flexible qualification standards.
“I just wish that they knew that the FHA program existed,” Ouimet said.
A buyer with imperfect credit and modest savings may be closer to purchasing a home than that buyer realizes, he added.
From Facebook DMs To Referrals
The panelists said education and service can turn a first-time buyer transaction into additional business from the borrower and the professionals involved.
Johnson said his business initially grew through real estate agent partnerships, Facebook, Instagram, and local radio. Referrals increased as he closed more first-time buyer loans and became known within his community for that work.
If he had to reduce his marketing, Johnson said he would protect his referral relationships and local radio presence before Instagram.
His weekly “Neighborhood Lending Real Estate Update” is recorded and divided into shorter videos for social media, allowing one radio conversation to produce content for multiple channels. The segments explain documentation, income requirements, loan qualifications, and other parts of the process buyers may not understand.
Dedhia said originators seeking real estate agent relationships should avoid making the same promises about rates, availability, service, and turn times that agents hear from everyone else.
Instead, they should ask about the agent’s business challenges and demonstrate how they can help solve them. Educational content can reinforce that expertise, but Dedhia said too many mortgage professionals use social media like a collection of digital flyers.
Ouimet said a colleague changed his thinking about how directly originators can ask for business. Ouimet had built much of his business by solving difficult loans, improving credit situations, and providing strong service. His colleague began sending simple Facebook messages to people in shared networks and generating business from those conversations.
The outreach did not require an elaborate script. Ouimet described it as a brief introduction, a reference to the person they both knew, and an invitation to discuss how he could help.
“One out of 10 shots,” Ouimet said. “But you miss every shot you don’t take.”
If he had to rebuild without a database, Ouimet said he would combine that direct outreach with social media advertising. He would then focus on making the first transaction go smoothly for every professional involved, including the buyer’s agent, listing agent, and title company.
“I want them to walk away saying that this was the easiest, best transaction I’ve ever had,” Ouimet said.
Preparation Prevents Cold Feet
The panelists said buyers rarely walk away near closing when expectations have been established throughout the process.
That includes explaining the payment and cash to close, preparing borrowers for potential home repairs, and checking in at each milestone rather than waiting for concerns to surface.
“Part of this job is you have to be a therapist,” Ouimet said. “You have to hear their fears.”
Johnson said buyers are less likely to develop cold feet when they understand the numbers and process from preapproval through closing.
“You’re making sure they understand the numbers, understand the process, and you’re setting those expectations throughout every part of the process,” he said.
Dedhia said originators should also acknowledge that nervousness is normal when someone is making one of the largest purchases of their life.
“Don’t just be an LO,” Dedhia said. “Be their therapist, be their coach, whatever you want to call it.”
That attention can turn a first-time buyer into a long-term source of repeat and referral business. Buyers often know friends and relatives entering the market at a similar stage of life, while a well-executed transaction can strengthen relationships with real estate agents and other professionals.
Dedhia said the referral request should come after the originator has earned the borrower’s trust through proactive communication, transparency, and education. The objective is to remain the client’s mortgage contact through future refinances, purchases, and referrals rather than treating the closing as the end of the relationship.
In an affordability-constrained market, the panelists’ message was straightforward: Originators cannot control rates, home prices, or inventory. They can become better at identifying the financing structures and local resources that make a purchase possible.
For first-time buyers who have already convinced themselves that they cannot afford a home, that conversation may be the difference between remaining on the sidelines and reaching the closing table.
The event was moderated by NMP Managing Editor Czarinna Andres and sponsored by MaxClass. The discussion was part of NMP Ignite, a live digital-event series that brings mortgage professionals together for tactical conversations about production, technology, leadership, and the changing lending market. Mortgage professionals can view the upcoming schedule and register for future sessions at NMPIgnite.com.
