Covid-19 has posed new challenges to first-time homeowners. We talked to Mark A. Jones and Doug N. Gahm, the CEOs and Co-Founders of Amerifirst Home Mortgage, about these unique challenges.
Mark A. Jones
CEO and Co-Founder, Amerifirst Home Mortgage
What are your top tips or steps for prospective homeowners?
Buying a home can be a daunting task — especially if you’re doing it for the first time. Don’t think that you have to go at it alone. Find yourself a trusted loan advisor that knows your market well, and has the heart of a teacher, rather than a salesperson.
What trends do you think first-time homebuyers should be watching for?
For most people, the highest barrier to homeownership is down payment requirements. However, a number of federal programs partner with lenders like Amerifirst to facilitate down payments as low as zero percent. There are also a variety of state and local down payment assistance programs that you might be able to access to bridge the gap. Some of these are specifically targeted at first-time home buyers. At the federal level, we expect the incoming Biden administration to continue to encourage these types of incentives. For many families, these programs can be the difference between renting and owning.
What does providing a dependable and reliable path to first-time homeowners mean to you? How does your team aim to incorporate this mission into every partnership?
We are dependable and reliable because we’ve been around the block a few times. We’ve seen many market cycles — both up and down. Back in 2008, when the rest of the mortgage industry took the economy down with irresponsible and often predatory practices, we were one of the few lenders with the good sense to stay out of it. When the smoke cleared, we were one of the only companies that survived. We have proven staying power because we’ve always put our customers first, and our customers know we’re truly on their side.
What key changes have you witnessed in the homeowner industry in the past five years?
Hispanic families are a rapidly growing share of the homeownership market, especially in many of the places where we do business. By 2030, Hispanics will account for 56 percent of new homeownership gains. It’s a change we are leaning into as a company.
What trends have you seen emerge in the mortgage industry during the COVID-19 pandemic?
While we typically concentrate on home purchases, COVID-19 has driven down interest rates to historic lows, and many, many existing homeowners have been able to refinance their loans. If you are already a homeowner, a refinance could be a great opportunity to help endure the economic fallout from COVID-19, either through significantly lowering your monthly payment or tapping into the equity in your home.
Dave N. Gahm
CEO and Co-Founder, Amerifirst Home Mortgage
What are your top tips or steps for prospective homeowners?
Home ownership is an incredible opportunity to establish financial security and build wealth for your family, and with interest rates currently at all-time lows, now is a great time to buy. That said, don’t feel like you need to rush it. The Federal Reserve has signaled that it intends to keep rates low for quite some time. Find a trusted advisor who can prequalify you, get you ready, and help you determine the right time to pull the trigger.
What trends do you think first-time homebuyers should be watching for?
For many years, there has been a significant shortage of housing inventory, especially at the starter home and entry-level price point. The gap between the demand for these homes and the number being built increases by the tens of thousands each year. We don’t see this correcting itself anytime soon — in fact, it has turned markedly for the worse in 2020. At any price point, there are 20 percent fewer houses for sale now than there were at this time last year.
What does providing a dependable and reliable path to first-time homeowners mean to you? How does your team aim to incorporate this mission into every partnership?
For 35 years, we’ve always been focused on doing business the right way. To us, that means making good loans, providing high-touch service, pairing our customers with loan advisors that know their market, understand their long-term plans and take a personal interest in them, and exceeding our customers’ expectations for speed and execution.
What key changes have you witnessed in the homeowner industry in the past five years?
We’re also following the millennial demographic very closely. They are a rapidly growing segment of the homeownership market, but they still tend to remain renters for longer periods than their parents before them. They are also saddled with far more debt, on average, and have chosen to delay household formation. We are continuing to adapt, as are many other lenders, to the way many millennials prefer to conduct business — online, on an app, or on their mobile device.
What trends have you seen emerge in the mortgage industry during the COVID-19 pandemic?
The mortgage industry has been a rare bright spot this year in an economy that’s been brutal for so many folks. This is largely because interest rates have fallen to historic lows. We have certainly been blessed. And because of that, we’ve taken it upon ourselves to give back more than ever before and help some of those who haven’t been as fortunate. We’ve volunteered, we’ve provided direct financial assistance, and we’ve helped many of our existing customers to restructure or hit the pause button on their mortgage. I hope that others in the industry are stepping up to the plate as well.