That disconnect is forcing lenders to adjust. With monthly payments climbing and incomes lagging, Street focuses on each buyer’s full financial picture. If someone isn’t ready for a $1,500 increase in their mortgage, he starts by looking at other liabilities. “What if we can eliminate some other debts that would get them more comfortable with it?”
Shifting focus, not shifting risk
Instead of relying on risky products or short-term solutions, Street focuses on thoughtful preparation. His team helps borrowers navigate traditional lending frameworks, which still provide the most favorable terms without adding unnecessary risk.
One tactic? Temporary buy-downs. For buyers expecting to become dual-income households in a year or two, easing into higher payments can make homeownership viable. “We’re able to kind of slowly ramp up into a higher mortgage payment,” Street said.
He’s also seeing younger buyers get more creative. “House hacking” – buying multifamily properties, bringing in roommates, or renting out parts of a home – is no longer niche.
“These aren’t fallback options – they’re strategic plays,” he said. And lenders can work with them. “Lending guidelines actually allow you… as a percentage of that income to help you qualify,” Street said, referring to projected rental income.
