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Would-be homebuyers aren’t sitting on the sidelines because they don’t want to buy. They’re sitting out because they think they can’t.
The Credit Score Myth That’s Holding Would-Be Buyers Back
Why Buying a Home Still Pays Off in the Long Run
Renting can feel much less expensive and much simpler than buying a home, especially right now.
The Truth About Down Payments (It’s Not What You Think)
Buying a home is exciting… until you start thinking about the down payment. That’s when the worry can set in.
“I’ll never save enough.”
“I need a small fortune just to get started.”
“I guess I’ll just rent forever.”
Sound familiar? You’re not alone. And you’re definitely not out of luck.
Here’s the thing: a lot of what you’ve heard about down payments just isn’t true. And once you know the facts, you might realize you’re a lot closer to owning a home than you think.
Let’s break it all down and bust some big down payment myths while we’re at it.
Myth 1: “I need to come up with a big down payment.”
This one stops a lot of people in their tracks. A recent poll from Morning Consult and NeighborWorks shows 70% of Americans think they need to put at least 10% down to buy a home. And 11% aren’t sure what’s required at all (see graph below):
The truth? According to the National Association of Realtors (NAR), the typical down payment for first-time buyers has been between 6% and 9% since 2018. But there’s more to the story. If you qualify for an FHA loan, you may only need to put 3.5% down. And VA loans typically don’t require a down payment at all. So, there are options out there that can really make a difference for some buyers.
Myth 2: “It’ll take forever to save up for a down payment.”
Sure, saving can take time. But it may not have to be as long as you think. In many states, reaching your goal can happen faster than you might expect, especially when you know your budget and have a clear savings plan.
According to a new study, the amount of time varies depending on where you live. The map below shows, on average, how many years it takes to save up for a 10% down payment based on typical home values and income levels in each state (see map below):
But remember, in most cases you won’t even need a down payment as large as 10%. Plus, no matter how much money you end up putting down, it won’t all have to come out of your pocket. Here’s why.
Myth 3: “I have to do it all on my own.”
This is one of the biggest myths of all. The reality is, there are thousands of down payment assistance programs out there, and the same poll from Morning Consult and NeighborWorks shows 39% of people don’t even know about them. That means a lot of potential homebuyers could already be closer to homeownership – they just don’t realize it.
These assistance programs are designed to help people like you who are ready to own a home but just need a little support getting started. As Miki Adams, President at CBC Mortgage Agency, explains:
“With high interest rates and soaring home prices, down payment assistance is more essential than ever.”
Bottom Line
If you’ve been putting off buying a home because the down payment feels like too much to tackle, talk to a local real estate agent. You may not need as much as you think, and there are plenty of resources out there, so you don’t have to do it alone. You just need an expert to point you in the right direction.
If the down payment wasn’t the thing holding you back, would you be ready to start your home search?
Why a Newly Built Home Might Be the Move Right Now
Are you looking for better home prices, or even a lower mortgage rate? You might find both in one place: a newly built home. While many buyers are overlooking new construction, it could be your best opportunity in today’s market. Here’s why.
There are more brand-new homes available right now than there were even just a few months ago. According to the most recent data from the Census and the National Association of Realtors (NAR), roughly 1 in 5 homes for sale right now is new construction. So, if you’re not looking at newly built homes, you’re missing out on a big portion of what’s available.
And with more new homes on the market, builders are motivated to sell their current inventory. As a result, many are taking steps to draw in buyers.
Builders Are Cutting Prices
According to Buddy Hughes, Chairman of the National Association of Home Builders (NAHB):
“Almost 40% of home builders reduced sales prices in the last month . . .”
That means builders are being realistic about today’s market and adjusting to what buyers can afford. It’s their way to keep their inventory moving.
So, builders may be more willing to negotiate price than you’d expect – and that means your dollar may go further if you buy a newly built home. Lean on your agent to see what’s available and what incentives builders are offering in and around your area.
Builders Are Offering Lower Mortgage Rates
Here’s something most people don’t know. Right now, buyers of brand-new homes often get better mortgage rates than buyers of existing homes.
That’s because many builders are also offering rate buydowns to make their homes more attractive and keep sales moving. Basically, they’re willing to chip in to lower your rate, so you’re more likely to buy one of their homes.
Data from Realtor.com shows, in 2023 and 2024, buyers of newly built homes got a mortgage rate around half a percent lower compared to those who bought existing homes (see graph below):
That kind of savings adds up and makes a big difference when you’re figuring out your monthly budget.
So, if you haven’t found something you love yet, it’s time to add newly built homes to your search. You may find that what you’ve been looking for is already out there, it’s just in a new home community.
Bottom Line
More choices, the potential to negotiate on the price, and maybe even better mortgage rates make these options a bright spot in today’s housing market.
If you haven’t considered a newly built home yet, what’s holding you back?
Talk to a local real estate agent about what’s available and if a newly built home makes sense for you.
Why Homeownership Is Going To Be Worth It
Life can feel a bit unpredictable these days. What’s happening with inflation? The economy? The housing market? But in the middle of all that uncertainty, there’s one thing a lot of people still crave – a place to call their own.
Because when everything else feels up in the air, home can be the thing that grounds you. As the experts at 1000WATT put it:
“Homeownership isn’t primarily financial anymore. . . Across all demographics, emotional and lifestyle factors consistently outrank wealth-building as motivators.”
Here’s what owning a home can mean for you, especially right now.
Freedom To Make It Yours
When you’re a homeowner, you don’t need to ask permission to paint a wall, hang a gallery of your favorite art, or redo the floors. You have the freedom to create a space that reflects who you are, all the way from the light fixtures to the paint colors.
Pro Tip: Just be mindful about exterior changes, if you buy a home in a community that has a homeowner’s association (HOA). There may be some approvals you’d need to get for select outdoor changes.
More Privacy, More Peace
Owning your home can give you a sense of peace you didn’t even realize you were missing. It’s a comfortable place where you feel secure and can relax, enjoy your privacy, and unwind after a long day.
Room To Grow
Whether it’s starting a family, setting up a home office for your new career, or finally building that home gym in the garage so you can hit your fitness goals, owning gives you the space to live life on your terms.
A Stronger Sense of Community
When you own, you’re not just passing through, you’re putting down roots. That often leads to stronger ties with your community, more connection to your neighborhood, and a deeper feeling of belonging where you live. That’s very different from the temporary nature of renting.
A Feeling of Accomplishment
There’s something powerful about getting the keys and walking into your own front door for the first time. It’s more than pride, it’s personal satisfaction. A quiet and meaningful sense of “I did this.”
Sure, it’s not always easy for first-time homebuyers right now. The market today requires patience, strategy, and sometimes a little creative problem-solving. But it’s still worth it. As Realtor.com says:
“Buying a home is a major commitment, but it’s also incredibly rewarding.”
When you get those keys in your hand, when you realize this place is where your life gets to unfold, it clicks. The stress, the waiting, the planning – all of it led you home.
Bottom Line
There are a lot of things out of your control right now. But building a life in a space that’s truly yours? That’s still possible with the right strategy and expert help. Talk to a local agent about how to make it happen.
What would it mean for you to finally have a place to call your own?
Is It Better To Rent or Buy a Home?
You’ve probably asked yourself lately: Is it even worth trying to buy a home right now?
With high home prices and stubborn mortgage rates, renting can seem like the safer choice right now. Or maybe your only choice. That’s a very real feeling. And perhaps buying today isn’t your best move; it’s not for everyone right away. You should only buy a home when you’re ready and able to do it, and if the timing is right for you.
But here’s the thing you need to know about renting.
While it may feel like a safer bet today – and in some areas might even be less expensive month-to-month than owning – it can really cost you more over time.
In fact, a recent Bank of America survey found that 70% of aspiring homeowners worry about what long-term renting means for their future. And they’re not wrong.
Owning a home may seem way out of reach, but if you make a plan now and steadily work toward it, homeownership comes with serious long-term financial benefits.
Homeownership Builds Wealth Over Time
Buying a home isn’t just about having a place to live – it’s a step toward building your future wealth.
Why? Home prices typically rise over time, which means the longer you wait, the more expensive it is to buy. And even in some markets where home prices are softening today, the overall long-term trend speaks for itself (see graph below):
And as home values rise, so does your equity when you’re a homeowner. That’s the difference between what your home is worth and what you owe. So, with every mortgage payment, that equity grows. Over time, that becomes part of your net worth.
Today, the average homeowner’s net worth is nearly 40X greater than that of a renter. That’s a shocking difference, and the dollars in the visual below don’t lie (see graph below):
And it’s one of the big reasons why Forbes says:
“While renting might seem like [the] less stressful option . . . owning a home is still a cornerstone of the American dream and a proven strategy for building long-term wealth.”
The Biggest Downside of Renting
So, short-term, why does renting feel like a simpler choice? Lower monthly payments, less responsibility, no strings attached. But long-term? It can sting.
For decades, while home prices have been rising, rent has gone up too. And while rent has held rather steady more recently, history shows the overall trend is up and to the right. That makes saving for a home more complicated than ever (see graph below):
That kind of financial uncertainty has a real impact. In the same Bank of America survey, 72% of potential buyers said they worry rising rent could affect their current and long-term finances.
Because rent doesn’t build wealth. It doesn’t come back to you later. It pays your landlord’s mortgage – not yours.
So, whether you rent or own, you’re paying a mortgage. The question is: whose mortgage do you want to pay?
Renting vs. Buying: What Really Matters
Think of it this way. Renting means your money is gone once you pay it. Owning means your payment builds equity – like a savings account you can live in. Sure, buying comes with responsibility. But it also comes with the kind of reward that grows over time. And that’s why you need a solid plan to get there.
As Joel Berner, Senior Economist at Realtor.com, explains:
“Households working on their budget will find it much easier to continue to rent than to go through the expenses of homeownership. However, they need to consider the equity and generational wealth they can build up by owning a home that they can’t by renting it. In the long run, buying a home may be a better investment even if the short-run costs seem prohibitive.”
Bottom Line
Renting may feel more do-able today. But over time, it could cost you more – without helping you build anything for your future.
If homeownership feels out of reach today, you’re not alone. And the first step toward getting out of the rental trap is to set a plan. Connect with an agent to set your specific goals and explore your options – so you’re ready when the time is right.
Is It Better To Rent or Buy a Home Today?
Some Highlights
- A study shows that 70% of prospective buyers fear the long-term consequences of renting. And here’s why.
- Rent usually rises over time and that can make it harder to save up to buy a home. But when you buy, you can stabilize your housing expenses and grow your net worth as home values rise.
- While renting may be the less expensive option in some markets, it can’t match the long-term benefits of homeownership. What’s your #1 reason for wanting to buy?
Buying a Home May Help Shield You from Inflation
It feels like everything is getting more expensive these days. That’s because inflation has remained higher than normal for longer than expected – and that’s impacting the costs of goods, services, and more. And with rising costs all around you, you’re probably questioning: is now really the right time to buy a home?
Here’s the good news. Owning a home is actually one of the best ways to protect yourself from the rising costs that come with inflation.
A Fixed Mortgage Protects You from Rising Housing Costs
One of the key benefits of homeownership is that when you buy a home with a fixed-rate mortgage, your biggest monthly expense — your mortgage payment — stabilizes. Sure, your payment could rise slightly as your homeowner’s insurance and property taxes shift. But no matter what happens with inflation, your principal and interest payments won’t change.
That’s not the case if you rent. Rent tends to rise over time, and it usually goes up even faster than the rate of inflation. Just look at the data from the Bureau of Economic Analysis (BEA) and the Census Bureau (see graph below):
So, while renters face higher costs year after year, homeowners with a fixed mortgage rate lock in their monthly payments, making it easier to budget no matter what happens with inflation.
Home Prices Typically Rise Faster Than Inflation
Another big reason homeownership is a great hedge against inflation is that home values tend to appreciate over time — often at a higher rate than inflation, according to data from the BEA and Fannie Mae (see graph below):
That makes real estate one of the strongest long-term investments during times of rising prices. While inflation can chip away at the value of cash savings, real estate typically holds or grows in value, allowing you to build wealth.
On the other hand, renting offers no protection against inflation. In fact, it does the opposite — when inflation drives up costs, landlords often pass those increases onto tenants through higher rents.
That means as a renter, you’re continually paying more without gaining any financial benefit. But as a homeowner, rising prices work in your favor by increasing the value of your home and growing your equity over time.
And with experts forecasting continued home price growth, that means you’re making an investment that usually grows in value and should outperform inflation in the years ahead.
In short, a fixed-rate mortgage protects your budget, and home price appreciation grows your net worth. That’s why homeownership is a strong hedge against inflation.
Bottom Line
Inflation can make everyday expenses unpredictable, but owning a home gives you stability. Unlike rent, your monthly mortgage payment stays pretty much the same over time. Plus, the value of your home is likely to increase after you buy.
How would having a fixed housing payment change the way you budget for the future?
The Big Difference Between Renter and Homeowner Net Worth
Some Highlights
- If you’re torn between renting or buying, don’t forget to factor in the wealth-building power of homeownership.
- Unlike renters, homeowners gain equity as they pay their mortgage and as home values rise. That’s why, on average, a homeowner’s net worth is nearly 40x higher than a renter’s.
- Connect with an agent if you want to learn more about the financial benefits of homeownership or the programs that can help make buying possible.
Renting vs. Buying: The Net Worth Gap You Need To See
Trying to decide between renting or buying a home? One key factor that could help you choose is just how much homeownership can grow your net worth.
Every three years, the Federal Reserve Board shares a report called the Survey of Consumer Finances (SCF). It shows how much wealth homeowners and renters have – and the difference is significant.
On average, a homeowner’s net worth is nearly 40 times higher than a renter’s. Check out the graph below to see the difference for yourself:
Why Homeowner Wealth Is So High
In the previous version of that report, the average homeowner’s net worth was about $255,000, while the average renter’s was just $6,300. That’s still a big gap. But in the most recent update, the spread got even bigger as homeowner wealth grew even more (see graph below):
As the SCF report says:
“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”
One big reason why homeowner wealth shot up is home equity.
Equity is the difference between your home’s value and what you owe on your mortgage. You gain equity by paying down your mortgage and when your home’s value goes up.
Over the past few years, home prices have gone up a lot. That’s because there weren’t enough available homes for all the people who wanted one. This supply-demand imbalance pushed home prices up – and that translated into faster equity gains and even more net worth for homeowners.
If you’re still torn between whether to rent or buy, here’s what you should know. While inventory has grown this year, in most places, there’s still not enough to go around. That’s why expert forecasts show prices are expected to go up again next year nationally. It’ll just be at a more moderate pace.
While that’s not the sky-high appreciation we saw during the pandemic, it still means potential equity gains for you if you buy now. As Ksenia Potapov, Economist at First American, explains:
“Despite the risk of volatility in the housing market, homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.”
But prices and inventory are going to vary by area. So, lean on a local real estate agent. They’ll be able to give you the local trends and speak to the other financial and lifestyle benefits that come with owning a home. That crucial information will help you decide the best move for you right now. As Bankrate explains:
“Deciding between renting and buying a home isn’t just about cost — the decision also involves long-term financial strategies and personal circumstances. If you’re on the fence about which is right for you, it may be helpful to speak with a local real estate agent who knows your market well. An experienced agent can help you weigh your options and make a more informed decision.”
Bottom Line
If you’re not sure if you should rent or buy, keep in mind that if you can make the numbers work, owning a home can really grow your wealth over time.
And if homeownership feels out of reach, connect with a local real estate agent and lender. They can help you explore programs that may make buying possible.