If you are delaying a home purchase due to the 20% rule, realize that this is no longer required. Most new home buyers today would struggle to find $80k cash for a $400k new home.
New home builders at Harvest by Hillwood accept not just conventional loans, but also VA and FHA loans which have down payment requirements closer to 3%. Even better, some qualified VA loan applicants need no down payment if they meet certain requirements.
In fact, when interest rates are trending up as they are now, saving for years towards a down payment can end up costing you more if you end up borrowing at a higher rate. Also, consider the opportunity cost. Delaying a home purchase and continuing to rent – when you could buy and build equity right now – could be the worst financial decision you can make.
Furthermore, you can expect your rent to go nowhere but up. In Dallas Fort-Worth, apartment rents have increased 17.4% in 2022 and there is no tenant protection. Rents can continue to rise in the double digits.