Rate Buydowns Are Becoming the Norm
Home prices in San Diego continue to rise in 2025, and traditional financing isn’t always enough to get buyers into homes. That’s why more people are turning to creative financing strategies. These alternative methods make homeownership more accessible, even in a high-cost market like San Diego.
Lending Bee offers expert guidance on a wide range of financing tools that go beyond the standard mortgage. Our personalized approach helps clients find flexible, competitive, and realistic solutions to buy in today’s market.
Lower Interest Rates Without Waiting on the Fed
Mortgage rates in 2025 are still higher than in previous years, with averages close to 7%. That’s why rate buydowns have become a go-to option for buyers looking to reduce their monthly payments.
A rate buydown allows buyers—or sometimes sellers or builders—to pay upfront to temporarily or permanently reduce the interest rate on a loan. This can make a significant difference in monthly affordability, especially in the first few years of homeownership.
Lending Bee helps buyers explore both temporary and permanent buydown options. We ensure the investment aligns with your plans and financial goals, whether you’re staying long-term or expecting a refinance opportunity later.
Seller Financing, Lease Options, and Wrap-Around Loans
More Flexibility from Sellers
With fewer buyers able to qualify for traditional loans, sellers in San Diego are more open to creative solutions.
Seller financing allows the seller to act as the lender. This setup often leads to faster closings and more flexible loan terms. There’s usually less paperwork and fewer fees compared to a traditional mortgage, which appeals to many buyers who may be self-employed or have limited credit history.
Lease options, also known as rent-to-own agreements, let buyers rent a property with the option to purchase it later. This gives buyers time to save for a down payment or improve their credit while locking in a future purchase price. These deals are especially helpful in fast-appreciating markets like San Diego.
Wrap-around loans are another innovative tool. A seller keeps their existing mortgage in place while creating a new loan that includes the original balance plus any additional financing for the buyer. This method can help buyers bypass strict lender requirements and often results in lower monthly payments.
At Lending Bee, we evaluate each of these options with you, ensuring the legal structure is sound and the financials are in your best interest.
Shared-Equity Programs Help with Down Payments
No Monthly Payments, But Shared Future Gains
Shared-equity financing is gaining popularity, especially among first-time buyers. Programs like Unison provide a portion of your down payment in exchange for a share of your home’s future appreciation.
This type of financing doesn’t involve monthly payments or interest, but you’ll owe a percentage of the increase in your home’s value when you sell. It’s a trade-off that works well for buyers who need help getting into the market but don’t want more debt.
Lending Bee guides clients through the pros and cons of shared-equity programs, helping you decide if this option aligns with your long-term financial plan.
Family Gifts and Inheritances Make an Impact
“Nepo Money” Fuels the Market
Many buyers are turning to family support to secure a home. In fact, nearly 25% of Gen Z and millennial homebuyers are using gifted funds or inheritances for down payments in 2025.
Lending Bee helps clients properly document these contributions so they meet mortgage requirements. We also offer strategies to use these funds effectively—whether it’s for a higher down payment, better loan terms, or to qualify for a larger purchase price.
Our team ensures all gift documentation complies with lender guidelines, avoiding delays or denials during underwriting.
San Diego Grant Programs Support Local Buyers
H.O.P.E. Program Offers Targeted Assistance
The H.O.P.E. grant in San Diego is a standout resource in 2025. Created to help teachers in District 5, it provides over $40,000 in down payment assistance. This support comes from a partnership between the Urban League and local government.
Lending Bee helps qualified buyers understand the eligibility requirements, deadlines, and paperwork needed to access these funds. We also monitor other grant programs across California and connect you with any additional support you qualify for.
Private Money, Crowdfunding, and Equity Leverage
Alternative Capital Sources Gaining Ground
Creative financing often means thinking beyond banks. Many buyers now explore:
Private money loans, which offer quick approvals and flexible terms from non-bank lenders. These are ideal for investors or buyers with non-traditional income.
Crowdfunding platforms allow multiple investors to pool funds to finance a single purchase. This is more common in investment property deals but is growing among residential buyers too.
Home equity lines of credit (HELOCs) and cash-out refinancing let current homeowners use the equity in their existing property to fund a new purchase. These strategies are especially effective for move-up buyers in San Diego who want to leverage their first home’s value.
Lending Bee assesses the risks and benefits of each option and helps clients select the best fit based on timing, costs, and long-term goals.
Green Financing Adds Long-Term Value
PACE and HERO for Energy Efficiency
PACE (Property Assessed Clean Energy) and HERO programs help homeowners finance energy-efficient upgrades through property tax assessments. While typically used for renovations rather than purchases, these tools can add value to a home shortly after buying.
Since payments are tied to the property and not the owner, they can be transferred to a future buyer. Lending Bee works with clients who plan to improve their property value through solar, insulation, or HVAC upgrades using these programs.
Subject-To Deals and Land Trusts for Advanced Buyers
Niche Strategies for Unique Situations
Subject-to deals involve purchasing a home “subject to” the seller’s existing mortgage. The buyer takes over payments, while the loan remains in the seller’s name. It’s a useful option for buyers with limited financing options, as it avoids the need for a new mortgage.
Land trusts are another advanced tool. They allow properties to be held anonymously under a trust name, offering privacy and asset protection. Some investors also use them to avoid triggering due-on-sale clauses during creative transactions.
Lending Bee helps experienced buyers navigate these sophisticated strategies with clear legal guidance and smart structuring.
Lending Bee Makes Creative Financing Simple
Buying a home in San Diego takes more than just a standard mortgage. Creative financing allows buyers to compete, save money, and find flexible paths to ownership in today’s market.
Lending Bee provides expert advice, personalized strategies, and a commitment to transparency. Whether you’re interested in rate buydowns, seller financing, shared equity, or private funding, we’re here to make your path to homeownership clear and achievable.