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Bill Rodriguez
When buyers hesitate in the market, the natural reaction for many builders is to reduce the price. But what if the biggest obstacle is the monthly payment? A price reduction may attract attention without creating enough payment relief to help someone move forward. In my recent EXCIA podcast conversation with Bill Rodriguez of Guild Mortgage, we explored a different approach: using creative financing solutions to make homeownership more accessible while helping builders protect their margins.
I invited Bill because I have seen the care he brings to the builders and buyers we work with. He understands that a financing program only matters if it helps solve a real problem. Our conversation focused on what he calls the “affordability stack”—combining compatible financing tools to create a solution around a buyer’s needs, rather than expecting every customer to fit into the same mortgage program.
One of the most valuable ideas from our discussion was that idea that: “Buyers experience their purchase price once, but they experience their mortgage payment every month.” That recurring commitment influences how comfortable they feel buying a home, supporting their family, and planning their future. Before assuming that a customer needs a less expensive home, we should understand what payment they are comfortable with. New home salespeople need to have the skill to work with the monthly numbers and various loan programs. I created a simple App, 8 years ago, specifically for this purpose.
This changes how we think about incentives. Rather than automatically offering a discount, a builder can compare what that same investment might accomplish through an interest rate buydown or another financing option. The goal is to identify which approach creates the most meaningful benefit for that particular buyer. Sometimes a more manageable payment can accomplish more than a reduction in the advertised price.
A specific low interest rate will drive in traffic, but often the buyer chooses a different program. Clarity is essential here. Buyers need the certainty of a specific interest rate to reassure them. Our role is to help customers ask informed questions and connect them with a qualified lending professional, who will then personalize a financing solution around their needs.
Buyers also need help understanding what an incentive actually means. An offer of thousands of dollars to “use as you choose” may sound generous, but it leaves customers responsible for figuring out how to turn that money into something useful. Many buyers do not know how to compare closing cost assistance, discount points, and other options. They need someone to explain the choices in clear, practical language.
Bill and I discussed the value of presenting a specific financing opportunity with the appropriate disclosures. A clear example gives buyers a reason to investigate further and helps them understand what may be possible. The sales team and lender must work together so that advertised terms, eligibility requirements, and the actual buyer experience support the same message.
Bill discussed many specific tools that can be stacked together to make a formidable toolbox to help close every sale. Such as:
Bill’s team have created a patented program that could possibly fix affordability. This is a revolutionary land lease program that separates ownership of the home from ownership of the land. Under the structure, Bill described that the buyer finances the home and makes a separate land lease payment, collected through the servicing arrangement. The outcome is a huge saving for buyers struggling to even own a home.
This program just received approval from Freddie Mac and Fannie Mae, is being introduced state by state, and is only available through Bill and his team. I am known to be hyperbolic, but I have a feeling that this may be a huge first step in solving the affordability crisis in home sales.
One of the great things about Bill and his team is that they offer you a stack of choices, just like a delicious pile of pancakes. They allow you and your clients to personalize the solution based upon your specific needs. This is all tied together with the “certainty syrup” of knowing that the lower rates and monthly investment are proving to increase sales, as opposed to reducing the price, which both lowers sales and harms appraised values.
For builders, the next practical step is to review financing strategy alongside your sales and marketing strategy. Ask your lending partner to compare options using your actual homes and realistic buyer profiles. Then prepare your salespeople to explain the opportunity clearly, recognize questions that require the lender’s expertise, and help buyers take the next step.
We cannot control every factor affecting the housing market, but we can improve how we respond. When builders, sales teams, and lenders work together, we can give buyers a clearer understanding of their choices and a more practical path toward the home they want. That is the real opportunity behind the affordability stack: finding solutions that create meaningful value for both the buyer and the builder.
To contact Bill to discuss your needs, please call him at 303-877-6323 or email him at Bill.Rodriguez@guildmortgage.net, and please call Roland at 561-236- 2400 or email him at Roland@newhomesalesplus.com.
