In expensive housing markets where inventories are tight, some buyers are finding it more affordable to invest in a multifamily property rather than purchase a single-family home, The Washington Post reports. The buyers can live in one of the units in the building while renting out the others to defray some mortgage costs and build equity.

Lenders are offering incentives for such multifamily investments, including competitive interest rates and lower down payment requirements than a single-family home. “I didn’t want to be sitting on the sidelines and playing this waiting game to own a home,” Frantz Jacques, 25, told the Post about purchasing a multifamily property in the Chicago area. He says he became interested in a multifamily investment after losing out in several bidding wars on single-family homes. “It feels like the longer I wait, the more out of reach homeownership would become,” Jacques says.

The share of home sales purchased by investors eclipsed 11.3% last year, marking a two-decade high, according to data from CoreLogic. The uptick is being driven by small investors looking to get into real estate for the first time. Low interest rates may also be driving multifamily investments. The share of borrowers taking out multifamily mortgages increased 24% in the third quarter of 2019 compared to a year prior, according to data from the Mortgage Bankers Association.

Younger buyers in particular are coming “to realize that they can’t afford the kind of home they want in the area of the city they want to live in,” says Leslie White, a Redfin agent in Washington, D.C. She’s seeing more clients consider multifamily investments instead, particularly drawn to three-unit rowhouses priced from $750,000 to $1.5 million. “They’re mostly young couples that could never afford to buy a single-family home in these areas, and they like the idea of having tenants help pay their mortgage,” White says.

But becoming a landlord isn’t for everyone, housing experts warn. “Homeowners need to know that it’s not just about collecting rent,” Susan Bishop, a broker with Four Seasons Sotheby’s International Realty in Rutland, Vt., told the Post. “Occasionally, dealing with late-night repairs and quick fixes around the house should be expected.”

The way FICO scores are calculated is changing this summer, and the move could make it tougher for some Americans to get approved for a mortgage, The Wall Street Journal reports.

Fair Isaac Corporation, more commonly known as FICO, will soon start more harshly penalizing the scores of consumers who have rising debt levels or who fall behind on loan payments. The company will also flag certain consumers who sign up for personal loans, which is a growing area of debt.

Just how could this impact borrowers? Consumers with high FICO scores of 680 or higher who continue to manage their loans may see an increase in their scores. But those with scores below 600 who continue to miss payments or have blemishes on their credit will see even larger declines in their scores. The best way for consumers to increase their credit score: Pay down bills on time and reduce any credit card balances, financial analysts say. They also advise that borrowers keep revolving debt below 30% of their available credit so that they don’t see a larger impact to their credit score.

“Credit scores are extremely important because they help determine whether or not you get approved for a loan or line of credit, and if you do, what interest rate you will be charged,” Ted Rossman, an industry analyst with CreditCards.com, told CNBC.com. “They’re among the most important numbers in your financial life.” According to FICO, the average score nationwide is now over 700—the highest on record.

Home sellers nationwide felt richer at resale in 2019. The average seller saw a home price gain of $65,500 on a typical sale, which is up from $58,100 the year prior, ATTOM Data Solutions reports in a new study. This marks the highest level since 2006.

That also represents a 34% average return on their investment compared to the original purchase price, which is also the highest average home seller ROI since 2006.

“The nation’s housing boom kept roaring along in 2019 as prices hit a new record, returning ever-higher profits to home sellers and posing even greater challenges for buyers seeking bargains,” says Todd Teta, chief product officer at ATTOM Data Solutions. “But there were signs that the market was losing some steam last year, as profits and profit margins increased at the slowest pace since 2011. While low mortgage rates are propping up prices, the declining progress suggests some uncertainty going into the 2020 buying season.”

Homeowners in western states continued to see the highest returns. ATTOM Data Solutions’ researchers found that the metros with the highest home seller ROIs were in the following areas:

• San Jose, Calif.: 82.8%
• San Francisco: 72.8%
• Seattle: 65.6%
• Merced, Calif.: 63.2%
• Salem, Ore.: 62.1%

Meanwhile, overall home prices continued to rise in 2019. The biggest year-over-year increases in median home prices in 2019 were: South Bend, Ind. (up 18.4%); Boise City, Idaho (up 12.6%); Spokane, Wash. (up 10.9%); Atlantic City, N.J. (up 10.6%); and Salt Lake City (up 9.6%).

Foreclosures in the fourth quarter of 2019 remained in the foreclosure process an average of 834 days, a 3% uptick compared to a year ago.

A home costs more than just the sale price. For example, closing costs—which make up about 2% to 5% of the home’s purchase price—are a major added expense. Michael Hyman, a research data specialist at the National Association of REALTORS®, shares the charges that make up closing costs in a post at the association’s Economists’ Outlook blog so that home buyers can be prepared.

Lenders provide a Closing Disclosure at least three business days prior to closing on a mortgage. But buyers will need to budget for these added costs ahead of time to avoid sticker shock days before closing.

Origination fees. This is the fee charged by lenders for processing the application and underwriting it. The fee typically ranges from about 0.5% to 1% of the borrower’s mortgage. Sometimes, it’s higher for smaller loans because “the fixed costs are a higher percentage of a smaller balance,” Hyman notes.

Service charges. These include items such as the appraisal, credit report, flood determination and certificate, tax status, pest inspection, title search and insurance, and survey fees. Appraisals and surveys can cost anywhere between $300 to $500 each. Title services can add up to about $2,000, so buyers may want to shop around for that.

Transfer taxes and recording fees. Transfer taxes vary by state but can run up to 2.7% in parts of New York. “It does not matter if the buyer or seller pays, as long as the transfer tax is paid to the government, so transfer taxes can be negotiated between the buyer and seller,” Hyman writes.

Escrow items. Homeowners insurance, property taxes, and primary mortgage insurance (if applicable) also are added fees. Buyers moving into a homeowners association may need to pay monthly dues for the upkeep of the community.

Hyman offers the following example for how these costs can add up: A buyer is purchasing a $275,100 home with a 5% down payment. The loan amount is $261,345. Closing costs are estimated at 2.5% of the loan value—so $6,533. The buyer made a $2,000 earnest money deposit, so they would need to bring $4,533 in cash at the time of closing. “Altogether, this means that the potential homeowner will need to have access to approximately $18,300 in cash to pay for the down payment and closing cost net of the earnest money deposit,” Hyman says.