(BPT) - Many of today's homebuyers and renters face affordability challenges. Higher mortgage rates and low housing supply have increased homeownership costs. Corresponding increases in rent have also made it more difficult for potential borrowers to save for a down payment.

However, just because affordability is a challenge doesn't mean that the dream of homeownership is unattainable. In fact, despite consumers' apprehension about the mortgage process, research shows that the aspiration to own a home is very much alive and there are a number of tools and resources that can help potential borrowers make their dreams of owning a home a reality.

What to do if you're ready to buy

The difficulty of saving money for a down payment can discourage potential borrowers from pursuing homeownership. However, you may be closer to affording a home than you think.

You've probably heard that you need a 20% down payment to buy a home. While this is a traditional standard, it's not mandatory to qualify for a home loan. Eligible, creditworthy borrowers can utilize mortgage loan options like Fannie Mae's HomeReady^®, enabling applicants to put down as little as 3% for home purchases or mortgage refinances. Through February 2025, the program also offers $2,500 towards down payment or closing costs, including mortgage insurance premiums, for very low-income purchase borrowers (≤ 50% applicable area median income) nationwide on the purchase of their principal residence.

If you're a potential borrower who is ready to buy a home now, you may have several options that can help make homeownership more affordable. An online down payment assistance tool can help you find programs that alleviate some of the upfront costs of buying a home. Using this tool, you can find federal, state, and local down payment and closing cost assistance for which you may be eligible. These resources can help you overcome the initial hurdles to purchasing a home and can make the overall homebuying process more feasible.

If you're a first-time homebuyer, you can talk to your lender about options like HomeReady^® First, which provides financial assistance to eligible first-time homebuyers residing in specific geographic communities. This mortgage option includes $5,000 in down payment or closing cost assistance, free homebuyer education, and may include a $500 appraisal credit.

What can I do if I'm not ready to buy?

If you're not ready to buy a home yet but hope to do so someday, there are still steps you can take to help prepare. First, review your credit score and see how it can be improved over time. As a renter, it's important to maintain a strong rent payment history to show lenders that you'd be a reliable borrower. For potential first-time homebuyers that do maintain a solid rent payment history, lenders can count those timely payments as part of the mortgage credit evaluation process, which can increase your chances of being eligible for a mortgage loan. In addition, there also are programs that allow your timely rent payments to be factored into your credit score, helping you establish or boost your credit score over time.

Make sure to use a closing costs calculator to educate yourself on closing costs and what fees are negotiable to potentially reduce your upfront costs. Knowing this information early on can help you make a long-term savings goal for your home purchase.

Continue to educate yourself on the homebuying process with an online homeownership education course like Fannie Mae HomeView^®. This free-of-charge, award-winning course provides 24/7, end-to-end access to information about financial literacy, building healthy credit, and the steps to homeownership and is available in English and Spanish. HomeView helps demystify the buying process and helps first-time homebuyers understand and navigate the process from start to finish.

Homeownership may be more accessible than you thought possible, whether you're ready to buy now or waiting until the time is right. By equipping yourself with the right knowledge, tools, and resources, you can navigate the complexities of the housing market with confidence and clarity, and possibly save money as well.