Two Moves That Can Get You Into Your First Home Sooner

 

Two Moves That Can Get You Into Your First Home Sooner

October 5, 2026· 3 min read

For a lot of first-time buyers, owning a home can feel perpetually a few years out of reach. Saving for a down payment takes time, and each year you spend renting can make owning feel further off.

But buying your first home doesn’t have to happen to feel like a far away goal. Two choices you control can bring your first home years closer, even with affordability as tight as it is right now.

How Long Buying Really Takes

First, one quick definition. "Breaking even" is the point where owning has cost you about the same as renting would have over the same period. And after that point, owning starts to cost less than renting. Kara Ng, Senior Economist at Zillow, puts it this way:

"Buyers should think about not just when they can afford to buy, but how long they'd need to stay before owning makes more financial sense than renting."

So how long does reaching that point usually take? And what are the shortcuts? Let’s do the math.

According to Zillow, it usually takes about 8.5 years to save for a 20% down payment, then roughly 6.2 more years before owning costs the same as renting. Together, that's just under 15 years. But that math relies on two assumptions: that you're buying a mid-priced home, and that you're putting 20% down. 

Change either one and your timeline gets shorter. Change both and it can shrink fast. It also varies widely by market, since local prices and rents are different depending on where you live. 

A Starter Home Can Get You There Twice as Fast

A starter home usually means a home in the lower third of local prices. They’re often condos, townhomes, or single-family homes a little smaller or older than others in the area. 

Choosing one over a mid-priced home can cut your wait down by a lot. And while that might sound obvious, you may not realize just how much it shortens your timeline. Because if you’re buying a more affordable home, you don’t have to save up as much or as long.

Zillow found that nationwide, a starter home takes half the time – about 7.2 years – to save for and come out ahead on, compared with renting (see graph below):

That works out to about 4.6 years to save and 2.6 years to break even. It won't erase every affordability challenge, but it can take years off the wait. And if you’ve already been saving for a while, it could get you closer to making it a reality.

You Usually Don't Need To Put 20% Down

You, like many first-time homebuyers, might assume you need a 20% down payment to even consider buying. But a lot of the time, you don’t. 

Most first-time buyers don't put down anywhere near that. The National Association of Realtors shows the median down payment for first-time buyers is 10% (see graph below):

And the minimums go lower still. Some buyers put down as little as 3% on a conventional loan or 3.5% on an FHA loan, and eligible veterans or buyers in certain rural areas can put down nothing at all.

There's help with the upfront costs of buying, too. Down Payment Resource counts 2,746 assistance programs nationwide, and some are even stackable:

"Some homebuyers can layer multiple sources of assistance to reduce their upfront costs. Layering means combining more than one eligible source of funding as part of your home purchase."

Put those together – a lower price point, a smaller down payment, and help covering it – and the years you thought you needed start to come down.

Bottom Line

Your first home may not be as far off as it feels. When the numbers make sense for you, buying a starter home and putting down less than 20% can get you there years sooner. 

Want to see which starter homes in our area could fit your budget? Let's connect.

The Mortgage Rate You See Online Isn’t Necessarily the One You’d Get.

 

You may have seen the headlines saying mortgage rates have climbed to the highest point since January 2025. And if that's left you reluctant to buy a home, here's what you need to remember… 

That's not necessarily the number you'd get. 

It's a common misconception that the rate you see in the headlines is the same one you'd get when you buy. The truth is, mortgage rates shift often, and the rate you actually end up with can vary a lot from what you may see or hear about. 

What Determines Your Real Rate? 

Advertised rates and “real rates” aren’t always the same. That’s because real rates are based on your specific situation, which includes your overall finances and goals. The rates you see in the headlines can’t possibly reflect that. 

That’s why only a lender can tell you what your real rate will be. To figure out your unique number, they’ll look at:

• Your credit score: Your credit score includes your payment history (if you’ve made late payments – and how often), credit utilization (are your accounts maxed out, or do you have available credit?), and the length of your credit history (how long have your accounts been open?). For example, someone with an exceptional credit score may qualify for a better rate.

• Your debt-to-income ratio (DTI): This is calculated by dividing your monthly debt payments by your monthly income before taxes to come up with a percentage. The higher your DTI, the higher your rate could be.

• The down payment size and Loan-to-Value (LTV): Your down payment is the percentage of the home’s price you will put down. The LTV is the percentage of a home’s sales price that equals your mortgage. 

• The type and term of loan program options: Your loan officer will walk you through different loan options based on what you qualify for. Mortgage rates can vary between different loan products and programs. 

Even after you find a home you love, other things can have an impact too. For example:

• A mortgage rate buydown: This helps you get a lower mortgage rate, and by extension, a lower monthly payment, by paying an upfront cost. Sometimes a seller, builder, or another party may even offer to cover that cost themselves as an incentive for you to buy.

• Seller concessions: Sellers are allowed to pay buyer closing costs according to most loan program guidelines. Seller-paid closing costs can add up to thousands of dollars, which can free up some cash for you to increase your down payment, pay down debt, or make other financial adjustments to try to get a better rate. 

There’s a lot that can ultimately have an impact on your actual rate. 

Your First Step? Getting Pre-Approved.

If you want to know if your number could be higher or lower than the headlines on social, you need to talk to an expert. A simple conversation with a loan officer can help you determine when you’ll be ready to buy, how much you can borrow, and of course, what your real rate will be. 

Your lender may recommend a pre-qualification and pre-approval:

• Pre-qualification is a general estimate of what you might be able to borrow based on self-reported information. 

• On the flip side, pre-approval is actually a conditional commitment from a lender based on verified information. 

Just know that, of the two, the pre-approval process gives you a more accurate picture of your options than pre-qualification. Bankrate gives a quick comparison so you can see why:

How To Get Ready for the Conversation

Ask your lender what documents you’ll need to gather for that conversation. And keep these questions in your pocket too. They’re good things to go over when you talk: 

• What will I gain or lose by waiting to buy a home for 3, 6, or 12 months? 

• Will I get any tax advantages by buying a home - and what are they? 

• What's the benefit of buying a home and starting to build equity now versus waiting? And how does that impact my finances in the long run?

• How will rate changes in either direction affect me?

Once you find out your rate, maybe you can buy now. Or maybe you still need to wait. But at least you’d know your options and can make an informed decision.  

Bottom Line

Headlines and social media make today’s rates sound high. But you have to remember, the rate you’re seeing online and your actual rate could be different. The only way to know what your rate could be is to talk to a trusted lender. 

With the right help, you can find out what your real rate is – and where it can take you.