By Tyler Terrebonne, REALTOR® | Greater Baton Rouge
To Search Homes in your area, visit Hot Listings Link Here
Rates are still high, inflation is squeezing wallets, and the overall sentiment from buyers and sellers is… well… bizarre.
But here’s the good news:
Homebuyers today have more creative financing tools than ever before.
These strategies are helping people lower their monthly payments, reduce cash to close, unlock better terms, and move forward confidently — even when the economic mood swings feel unpredictable.
Below are 12 real-world financing ideas that buyers in Greater Baton Rouge (and across the country) are using right now.
1. Seller- or Builder-Paid 2-1 Buydowns
A 2-1 buydown gives a buyer a 2% lower rate in year one, then 1% lower in year two, before settling into a normal fixed rate.
This helps ease into the mortgage while keeping early payments affordable — especially helpful on new construction, where builders use this instead of reducing price.
2. “Pick Your Payment” Packages From Builders
Some builders now let buyers choose between:
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Temporary rate buydown
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Permanent buy-down
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Closing cost assistance
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Upgrade credits
It’s essentially a customizable financing menu.
3. Seller Credits Used to Buy Down the Rate
Instead of asking for price reductions, buyers are negotiating 2–3% in seller credits and using that money to permanently lower their interest rate.
Buying points can often reduce the rate by 0.25% per point, creating long-term savings.
4. DSCR Loans for House Hackers
Debt-Service-Coverage-Ratio loans, typically used by investors, can benefit buyers who want to purchase a duplex, triplex, or fourplex.
The lender uses the property’s projected income to help qualify the buyer — a huge perk when affordability is tight.
5. Combining Down Payment Assistance With Seller Credits
Many buyers don’t realize this is allowed.
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DPA covers the down payment
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Seller credit covers most closing costs
This dramatically reduces cash needed at closing and keeps purchasing power alive.
6. Renovation Loans That Build Instant Equity
Instead of overpaying for a fully updated home, buyers can purchase a dated property and use:
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FHA 203k, or
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Conventional Homestyle
These loans wrap renovation costs into the mortgage and can create instant equity once improvements are complete.
7. Lease-to-Own With a Locked Interest Rate
Some lenders now offer rent-to-buy programs where buyers:
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Rent for 6–12 months
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Lock a purchase rate now
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Apply a portion of rent toward the down payment
Perfect for buyers who need time to improve credit or save more cash.
8. Assumable Mortgages (One of the Biggest Opportunities Right Now)
Many FHA and VA loans from 2020–2022 came with 2–4% interest rates.
Buyers today can assume those loans — meaning take over the existing rate.
The main challenge is covering the equity gap, but for the right buyer, the payment savings can be massive.
9. Shared-Equity Programs With Parents or Employers
A growing trend:
Parents or companies help with the down payment in exchange for a small share of future equity.
This reduces debt, lowers the payment, and creates support without traditional co-signing.
(And Baton Rouge companies with 40+ employees sometimes offer these programs — great tie-in with local lender partnerships.)
10. Non-QM & Bank Statement Loans for Self-Employed Buyers
When inflation eats into profits, many self-employed buyers struggle with traditional income documentation.
Bank statement loans allow qualification using 12–24 months of deposits, making homeownership possible for contractors, gig workers, and small business owners.
11. “Buy Now, Refinance Later” With Free or Discounted Refis
Many lenders are offering free or low-cost refinances within 2–3 years.
This mitigates the fear of buying at today’s rate, knowing you can adjust the payment when market conditions improve.
12. Using a HELOC to Fund the Down Payment
Buyers with equity in their current home can utilize a HELOC to cover the down payment on a new purchase.
This avoids having to sell first — especially useful in a market where many sellers are hesitant to list until they find their next home.
Why Creative Financing Matters in Today's Market
Today’s housing market requires strategy.
Affordability is tight. Inflation is real. Sentiment is shaky.
But the dream of homeownership is very much still alive.
Creative financing gives buyers options — and options create confidence.
If you want help navigating any of these strategies or want a personalized game plan based on your budget, goals, and timeline, I’d be happy to walk you through it.
Visit my Website & Contact Me Here
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