Ways Employers Can Help Employees Buy New Homes

By Walecia Konrad · July 24, 2023 · 5 minute read

We’re here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey. Read more We develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide. We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right. Read less

Ways Employers Can Help Employees Buy New Homes

It’s a win-win situation. When employers help employees become homeowners — even in small ways — workers may feel even more loyal to them. And employees who own their homes are far less likely to relocate and change jobs.

The reasons aren’t hard to figure out. Homeownership can be a major contributor to employees’ overall financial well-being, security, and stability, all of which can add to their productivity and satisfaction on the job. Employer-sponsored homeownership benefits also help build strong communities, and strong communities are almost always good for business.

The need for employer help may be greater now than ever. Stubbornly elevated home prices, the uptick in mortgage rates, low housing inventory, and the high overall cost of living have meant that it has been harder for employees, particularly workers under age 35, to afford to buy their own homes. For many first-time home-buyers, the only option is to move to a lower-priced housing market. If those employees can’t work fully remotely, they may simply switch jobs.

The widespread lack of affordable housing in many areas can also make it difficult for employers to attract and retain the best hires. According to data from Gallup, the cost of replacing an individual employee can range from half of to two times the employee’s salary.

The ultimate result? A huge challenge for HR professionals.

Offering home buying benefits can help. Numerous companies, understanding the link between homeownership and retention, have introduced homeownership benefits to help build a loyal, productive workforce that can further advance their business objectives.

Below are some of the ways employers can help their workforce become satisfied homeowners. After studying your workforce demographics and your budget, you may find inspiration among the various approaches below.

Homebuyer Education and Counseling

Knowledge is one of the most cost-effective benefits there is. Consider pairing up with area mortgage experts, financial counselors, and others to produce on-site or virtual information seminars on various homebuying topics. Banks, mortgage brokers, and real estate brokers in your area may be willing to offer free information sessions at your organization in hopes of generating clients. Or you may find one of the many homebuyer consultants available to help educate your workforce.

These programs can provide interested employees with the basics on the local market, different types of mortgages and their rates, mortgage insurance, down payment assistance, legal issues related to homeownership , foreclosure prevention, and much more. And an informed employee can avoid the financially costly mistakes that can so often be part of real estate purchases.

Recommended: How Homeownership Can Help Build Generational Wealth

Credit Counseling

A good credit score is key to qualifying for a mortgage with favorable rates. Employer-sponsored credit counseling can help employees learn how to check their credit scores and, if necessary, take steps to improve them. Consider partnering with a respected credit counseling firm to conduct in-house or virtual workshops or allowing employees time off to attend approved credit counseling seminars outside the workplace.

Recommended: Supporting the Financial Well-Being of Newly Hired Recent Graduates

Down Payment Assistance Programs

With home prices as high as they are in many markets throughout the U.S., saving up a down payment of 10 percent to 20 percent or more can be a barrier to homeownership for many workers.

Employers can help in two ways. They can offer direct financial assistance. This usually entails paying a percentage of an employee’s down payment with a dollar amount maximum.

Employers can also help employees access government-sponsored grants and low-interest loans designed to help first-time homebuyers cover down payments and/or closing costs. Your state’s housing finance agency and your local housing authority likely have first-time homebuyer programs. Many offer qualifying buyers grants that don’t have to be paid back. Others have low or no-interest loans that often don’t have to be paid back until the house is sold or refinanced. As a rule, these programs aren’t broadly advertised, so employers who help workers find and apply for such assistance can play an important role in securing these funds.

Help Finding and Paying Real Estate Professionals

Consider partnering with a local bank or mortgage broker to help employees find home financing. In return for the potential mortgage clients, you may be able to negotiate lower closing costs and fees for your employees that your firm also might or might not help subsidize.

A partnership between your firm and local realtors can provide workers with special help in the house-hunting process. And a relationship with local real estate lawyers or access to your own firm’s legal expertise can help lower legal fees associated with home buying for your employees.

Professional relocation services can help with home buying when an employee moves from one area of the country to another. However, with the rise of remote work, this is increasingly less common.

Important Extras

There are lots of small but important and cost-effective gestures employers can make when employees are finishing up with the home buying experience. Extra days off (with pay) for closing and moving, for instance, can reduce stress and produce goodwill.

When the deal is done, it’s a nice gesture to acknowledge the new homeowner with a card or housewarming gift. Be sure to remind your employees that you or your expert partners can help answer any follow-up questions that come with homeownership.

You’ll also want to make sure that learning to manage mortgage payments and home ownership is part of your employees’ overall financial well-being picture. Your wellness programs may be able to help with budgeting for home improvements, maintenance, insurance, and other costs your employees may not have anticipated with home ownership.

The Takeaway

Employers can’t be the only resource employees turn to when it comes to buying a home. But a company that has a workforce full of employees of home buying age may find that it can fill an important need and, in the process, help keep its workforce steady, loyal, productive, and satisfied.

Products available from SoFi on the Dashboard may vary depending on your employer preferences.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery, or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

Advisory tools and services are offered through SoFi Wealth LLC, an SEC-registered investment adviser. 234 1st Street San Francisco, CA 94105.

SoFi Student Loan Refinance Loans, Personal Loans, Private Student Loans, and Mortgage Loans are originated through SoFi Bank, N.A., NMLS #696891 (Member FDIC), (www.nmlsconsumeraccess.org ). The Student Debt Navigator Tool and 529 Savings and Selection Tool are provided by SoFi Wealth LLC, an SEC-registered investment adviser. For additional product-specific legal and licensing information, see SoFi.com/legal. 2750 E. Cottonwood Parkway #300 Cottonwood Heights, UT 84121. ©2024 Social Finance, LLC. All rights reserved. Information as of April 2024 and is subject to change.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.


All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store
SoFi Android App, Get it on Google Play

TLS 1.2 Encrypted
Equal Housing Lender