State of the Union: Don’t Wait on Washington to Fix Housing

The President delivered the State of the Union.

Plenty of topics were covered.

Housing affordability? Not so much.

And that tells us something important.

If you’re a real estate investor waiting for a major federal program, dramatic rate shift, or sweeping housing reform to suddenly change the math…

You may be waiting a long time.

The Market Doesn’t Pause for Policy

Every year there’s speculation:

  • “Maybe rates will drop more.”

  • “Maybe there will be new investor incentives.”

  • “Maybe something big is coming.”

But here’s the reality:

Most real estate wealth is built by investors who move when the numbers work — not when headlines tell them to.

Rates Are Already Workable

Right now, DSCR rates are sitting at levels where many deals already pencil.

With floors starting around 5.50%, strong files are in a position to:

  • Generate positive cash flow

  • Increase DSCR cushion

  • Improve leverage qualification

  • Refinance out of older, higher-rate loans

And even if a deal is slightly tight…

We Have Tools to Make It Work

If DSCR is close but not quite there, we can structure around it:

🔹 10-Year Interest-Only

Lower monthly payments dramatically.
Increase DSCR immediately.
Create breathing room.

🔹 Strategic Buydowns

Buying the rate down 0.50% or more can:

  • Improve qualification

  • Boost DSCR

  • Strengthen approval odds

  • Stabilize cash flow

🔹 Leverage Adjustments

Sometimes a small LTV tweak solves the entire issue.

Deals don’t die because rates are too high.

They die because they aren’t structured properly.

Waiting Has a Cost

If you wait for a big federal housing announcement:

  • Inventory may tighten

  • Competition may increase

  • Prices may rise

  • Spreads may widen

  • Good deals disappear

Opportunity doesn’t wait for press conferences.

The Bottom Line

If the deal works today — go for it.

If it’s close — structure it correctly.

If you’re unsure — run the numbers.

Don’t wait for Washington to solve a math problem you can solve now.

We’ll show you:

  • Par rate vs buydown

  • 30-year vs 40-year

  • Fully amortized vs 10-year I/O

  • DSCR impact side-by-side

Call 718-635-2377 or email george@loanfunders.com.

Let’s make decisions based on numbers — not headlines.

Business-purpose loans only. Not a commitment to lend. Rates and eligibility subject to underwriting approval.