Most first-time buyers in the outskirts of Los Angeles County assume they should wait for mortgage rates to drop before purchasing. But if home prices keep climbing while they wait, the savings on interest get erased by a higher purchase price, and the higher principal balance stays for the life of the loan.
Gabriella Godde, a mortgage loan originator with Groves Capital, Inc. who focuses on the Antelope Valley and surrounding areas of LA County, has spent nearly three decades in lending. She sees this miscalculation regularly among first-time buyers in her market, where home prices sit around $500,000, and rates hover near 6.5 percent as of September 2026.
Godde’s argument rests on a simple distinction: rates are adjustable, but the purchase price is locked in. A buyer who purchases today at 6.5 percent can refinance when rates drop. A buyer who waits may face a home that costs significantly more – and that higher balance compounds over 30 years.
“I hear a lot of people say that they’re going to wait for the interest rates to go down, but I think that’s a mistake,” Godde said. Her advice is blunt: “They need to marry the house and not marry the rate.”
That perspective carries real risk. No one can guarantee prices will keep rising. If the market softened, a buyer who purchased at today’s prices and rates could owe more than the home is worth, at least temporarily. Rates could also stay elevated longer than expected, delaying the refinance that makes the strategy work.
One reason buyers hesitate is the memory of the 2008 housing crash. Godde draws a distinction between that period and today. She says the crash was driven by lenders offering 100 percent financing and stated-income loans to borrowers who could not actually afford their payments. Today’s standards require documented income, down payments, and stricter qualification thresholds.
“I just don’t see us having a crash as we did before,” she said.
A national crash may be unlikely under current lending rules, but the Antelope Valley has its own dynamics. It sits far from the job centers of central LA, and its relative affordability is part of what draws buyers there. If commuting patterns shift or remote work contracts further, demand in outlying areas could soften in ways that are hard to predict.
For a first-time buyer considering a $500,000 home, Godde said an FHA loan requires just 3.5 percent down, roughly $17,500. She says that figure surprises many callers who assume they need 20 percent. Sellers can also contribute up to 6 percent toward closing costs on an FHA loan, which at this price covers up to $30,000 in fees and expenses.
On a conventional first-time buyer loan, the minimum down payment drops to 3 percent, $15,000 on a $500,000 home, plus the cost of an appraisal, which Godde said typically runs around $650.
Godde also describes zero-down options. VA loans require no down payment for eligible veterans, and down payment assistance programs can cover the remaining gap for buyers who qualify. The tradeoff, she said, is that down payment assistance programs carry higher interest rates than standard FHA loans, which increases monthly payments.
“The misconception from first-time homebuyers now is, oh, I need a lot of money to buy a house,” Godde said. “And that is definitely not the case.”
Godde frames homeownership itself as the wealth-building mechanism, arguing that renters miss out on equity growth entirely. She describes a pattern she sees among her clients: buy a home, live in it for a year, then convert it to a rental while moving on to a second purchase.
She pointed to a recent example, an unmarried couple who bought a four-bedroom house, lived in one room, and rented out the rest. Their mortgage payment was about $2,500 a month, and the rental income from the other rooms covered it. “They were very smart,” she said.
Godde also noted that first-time buyers can purchase up to four units with an FHA loan at 3.5 percent down. A buyer who lives in one unit and rents the others becomes an investor immediately.
Homeownership does carry costs renters avoid – property taxes, maintenance, insurance, and the risk of depreciation. A buyer stretching to afford a home at 6.5 percent with minimal savings may find those expenses harder to absorb than expected, especially in the early years when equity is thin.
One more detail Godde emphasized: she advises buyers to work with a mortgage broker rather than a large bank. Her brokerage has access to 150 lenders, she said, which means more loan programs and more flexibility to match the right product to each buyer’s situation. A large bank, by contrast, typically offers only its own limited set of programs.
About the Expert: Gabriella Godde is a mortgage broker with nearly three decades in the lending industry, working primarily in Los Angeles County, California.
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
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