7 Ways to Increase Your Home Buying Power (Without a Bigger Down Payment or Paying Off Debt)

If you're thinking about buying your first home—but don’t have extra savings for a bigger down payment or time to pay off debt—you’re not alone.

The good news? There are smart ways to increase your buying power without changing your income or savings. Whether you're buying in Los Angeles, the South Bay, or another competitive market, these tips can help you qualify for a higher loan amount and feel more confident as you begin your home search.

1. Work with a Lender That Allows a Higher DTI

Not all lenders use the same rules. Some are more flexible with debt-to-income ratio (DTI), which is the percentage of your monthly income that goes toward loans and bills.

If your lender allows a higher DTI, you might qualify for a larger loan even if you still have car payments or student loans.

Tip: Ask your Realtor to connect you with lenders that allow higher DTI limits.

2. Improve Your Credit Score

A higher credit score can get you a better interest rate—meaning a lower monthly mortgage payment.

Even a small jump (for example, from the high 600s to low 700s) can make a noticeable difference in what you qualify for.

Good to know: You don’t need perfect credit. Paying bills on time and fixing mistakes on your credit report can help.

3. Reduce or Remove PMI

PMI (private mortgage insurance) is an added cost if you put down less than 20%. It can be hundreds of dollars per month.

Some first-time buyer loans have reduced PMI—or none at all.

Tip: Ask about loan options that reduce or remove PMI to lower your monthly payment.

4. Use First-Time Homebuyer Programs

These programs are designed to help first-time buyers and may offer lower rates, fee assistance, grants, or easier loan approvals.

Even if you think you might not qualify, it’s worth checking.

Tip: Your Realtor or lender can help you find programs based on your income and the area where you want to buy.

5. Ask About a Lower Tax Basis

Your monthly mortgage payment includes an estimate of property taxes.

If the seller has owned the home for many years, their current taxes might be lower than what lenders typically estimate (usually 1.25% of the purchase price).

Some lenders will qualify you using the current tax rate—helping lower your estimated monthly payment.

Note: Your property will be reassessed after purchase, and you’ll receive a one-time supplemental tax bill.

6. Shop for the Best Interest Rate

Interest rates can vary by lender and loan type. Even a small difference—like 0.25%—can change your payment by $100 or more per month.

Tip: Get loan estimates from more than one lender. If one gives you a better offer, you can ask another to match it.

7. Add a Co-Borrower

A co-borrower can help increase your loan amount if they have steady income and good credit.

They don’t need to live in the home. Some programs allow a partner, family member, or close friend to help.

Important: Make sure both of you understand the responsibility that comes with sharing a loan.

You don’t need perfect finances or a huge down payment to buy a home—just the right team and the right plan. If you’re thinking about buying and want to explore what’s possible, we’re here to help.

This is what we do every day, and why we love helping first-time buyers across Los Angeles and the South Bay.

Let us know if you'd like to talk more about what’s possible for you.