Home Buying Tips for All Life Stages
Starting out or cashing in — here are some options
The rapid growth of equity and home and land values has just been unprecedented over the past several years, and now we are into 2026 where we are finally seeing a bit more balanced market with modest growth and some reduction in prices. Coupled with what are still deemed low rates in the 5’s and low 6’s in home finance, lack of inventory and motivated homeowners, we have an economy very much propped up on real estate. Inventory remains tight, making early real estate buying decisions in 2026 potentially the best time to buy before prices and competition potentially rise later in the year some say fueled by softening rates. As we Los Angelenos slowly recover from the devastating fires, and the 2nd year of our current administration, we will likely see a moderately lower interest rate environment and are already experiencing more flexible underwriting guidelines this year which will help buyers. Despite changes in the mortgage market, the following may be helpful in taking advantage of this market when thinking about your life stage.
20s — Get in the game
At this stage in your life, you haven’t had much time to save up for a down payment and may be carrying student loan debt. But that doesn’t mean it’s impossible to become a homeowner.
Putting down the standard 20 percent eliminates the need to purchase private mortgage insurance (PMI), but it’s not the only way. In fact, many buyers do less or take advantage of low-down payment options offered with low down payment Fannie Mae, VA, or FHA loans. In addition, first time buyers should be taking advantage of grants and forgivable down payments. You don’t have to be completely debt free to qualify for a mortgage. What’s particularly important is your debt-to-income ratio (DTI). A DTI of 45 percent or less is required on most conventional loans, while other loan programs will allow for a debt-to-income ratio above 45 percent.
Your credit score will also play a large role in determining qualification. Credit scores range between 300 and 850 and are widely known as FICO. With many factors to calculate your FICO, a credit score over 700 will usually allow access to the lowest rates. Talk to your lender and ask what is available. There are more products, ability to have a co-signer, niche products, and ask about grants and down payment assistance.
30s — See where you stand
While you may have had a little more time to start saving, it’s possible you’ve also run into more expenses along the way. Weddings anyone? Or maybe you’ve welcomed a child into the world. Diapers, onesies, perfecting that nursery—it can all add up fast.
Another significant portion of buyers in their 30s is people who have bought in their 20s but are now looking for more space or better amenities. Whether it’s to accommodate a growing family or you’ve decided you want a condo equipped with a pool and rooftop deck, you’re ready to make the upgrade.
In this case, you can use some of the equity you’ve built up as part of your down payment, or offset your old home by turning it into a rental. Keep in mind if you sell and buy, you will have to juggle that at the same time. The first thing you’ll want is a comparative analysis of your home, to estimate its selling price and talk to your lender for alternatives like bridge financing. Then you can decide if you’re going to go the ‘sell it first’ or the ‘buy it now’ route.
40s — Find or perfect your “forever home”
Buying a home using the equity from your first home can be a game changer for your budget. Oftentimes it becomes easier to make a bigger down payment and therefore have less of your home to finance, reducing your monthly mortgage payments.
If you’ve already bought, and you’re happy with where you’re at, your 40s can also be a good time to look into refinancing. Are you still paying a higher rate or PMI? Has the overall value of your home increased? Do you decide to upgrade your home, remodel it, or sell and move? With low mortgage rates, we’ve seen an uptick in homeowners looking to refinance with a new rate. This stage of homeownership could also be the perfect time to consider making renovations, which have the potential to boost your home’s value. Talk to your lender about refinance comparisons, purchase rate specials, or home equity loans.
50s and beyond — Use your equity
While some people stay in their homes forever, others find that at some point they don’t need all that space anymore. If you’ve become an empty nester, you might be thinking about downsizing.
If you’ve already paid off your mortgage for your current home, then you’ll have the money from the sale of your home to put toward purchasing your new place. But even if you haven’t paid the entirety of your mortgage, you can still use the equity you’ve built up over the years.
You’ll want to have your home appraised. If your home is worth more than you owe on your existing mortgage, you might be able to pull out equity and secure a lower interest rate. Be careful that whichever route you go, you’re not reaching into your retirement fund.
No matter which stage you’re in, it’s helpful to speak with a mortgage professional to help you make the best decisions. Everyone’s situation is unique, but there are many options to help achieve both your financial goals and your homebuying dreams.
Ryan Woodward is Senior Mortgage Loan Officer at Wintrust. Mortgage lending in all 50 states, conventional, portfolio lending, banking relationships, and niche expert on Physician Loan Programs. Learn more at Ryan.woodward@wintrustmortgage.com.
