The Perfect Time to Buy: Why Expert Advice Isn't Always Your Best Advice

Written By Allison Vega

Hey there, neighbors! We’re the Vegas. I’m Allison, your local Murfreesboro design consultant, with my husband Francis, a licensed general contractor for Vega Bros Construction.

In our house, we talk a lot about "bones" and "bottom lines." Between Allison decorating and staging houses and Francis tearing them apart to make them better, we’ve seen every side of the Middle Tennessee market. Lately, the biggest question we get over coffee at Joanie’s or at the dinner table is: "When is the best time to buy?"

Most people say the best time to buy is now. We disagree. We say the best time to buy is when you are actually ready.

 

At a Glance: The Vega Take

  • The Reality: Waiting for a 20% down payment in the Middle Tennessee market often means being priced out by rising home values.

  • The Goal: Buy when you are personally ready, not when the "market" or "gurus" say so.

  • The Strategy: Use FHA, USDA, or VA loans to get into a home sooner and build equity while you live in it.

A traditional, luxury house with a sale sign in the front yard in Rutherford County

Is the Dave Ramsey 20% Down Rule Realistic in Murfreesboro?

If you’ve ever listened to Dave Ramsey (our famous neighbor over in Franklin), you know his golden rule: Wait until you have a 20% down payment and stick to a 15-year fixed-rate mortgage. From a contractor’s perspective, Francis loves the "sturdy foundation" of that advice. From a design consultant’s perspective, I love the financial peace it brings. But we also live in reality. For the average American household, saving $80,000 while rent prices in Murfreesboro keep climbing feels like trying to fill a bucket with a hole in the bottom.

Here is the "Vega Take" on the math:

  • 15-year vs. 30-year: A 15-year loan is incredible for saving interest, but a 30-year loan is more realistic for most families. It gives you a lower "must-pay" amount each month.

  • The 50-Year Loan: Just... no. Don’t do it.

  • The Prepayment Penalty: Whatever loan you get, make sure you can pay it off early if you want to. Never sign a loan that punishes you for being responsible.

Why Home Equity is Better Than a Savings Account

No one has a crystal ball. We can make educated guesses based on market trends, but the truth is, the market does what it wants. However, one thing remains true: Land itself doesn't depreciate. The sooner you can confidently and comfortably buy, the sooner you stop paying someone else’s mortgage and start building your own equity.

beautiful green grass land with blue skies and a few white clouds in Middle Tennessee

A Controversial Opinion: Renting is the Real Risk

It might be controversial, but we believe it’s often better to be an owner with a "less-than-perfect" loan than a lifelong renter waiting for a "perfect" 20% down payment.

Let’s look at a real-life example (The 2020 Pivot):

A friend of ours bought a house in 2020 for $280,000. He didn't have 20%; he used a 5% conventional loan.

Over five years, he put about $35,000 into updates (As a general contractor, Francis notes that the $35,000 in updates added nearly $60,000 in appraised value—a return on investment you can't get while renting). By 2025, the house appraised for $420,000.

Because he didn't wait, he now has $140,000 in equity. He even reached the point where he could drop his PMI (Private Mortgage Insurance). If he had waited until he saved $56,000 (20%) to buy, he’d likely still be renting—and that same house would now be priced way out of his reach.

Note: While those 2020 interest rates were an exception, the principle stands: Equity grows while you're living in it.

How to Buy a Home in Tennessee with a Low Down Payment

You don't need a mountain of gold to get a set of keys. There are incredible programs designed to help:

  • FHA Loans: Great for lower down payments (as low as 3.5%), though you will pay PMI. FHA loan limits are high in Nashville - Davidson County, Murfreesboro - Rutherford County, and Franklin - Williamson County.

  • USDA Loans: If you're looking a little further out from the Boro city limits, these can sometimes offer 0% down in "rural" designated areas. Learn more about Tennessee programs.

  • VA Loans: If you’re a Vet or an unmarried surviving spouse, thank you for your service—you may qualify for 0% down with no PMI. Check out VA Loan Eligibility and Rates.

  • First-Time Homeowner Programs: Tennessee has specific grants and programs to help with closing costs and down payments. Check out the Tennessee Housing Development Agency (THDA).

Loan Type | Min. Down Payment | Best For

Conventional | 3% - 5% | Good credit, flexible terms

FHA | 3.5% | First-time buyers / lower credit

USDA | 0% | Rural Rutherford County properties

VA | 0% | Veterans & Service Members

scrabble token writing out the word mortgage on a wooden table

Your First Step

Don't guess what you can afford based on an internet calculator. Talk to a local lender in Rutherford County. They can look at your specific "foundation" and tell you exactly what’s possible.

Buying a home is a marathon, not a sprint. Whether you need a house that’s move-in ready or a "fixer-upper" that Francis needs to look at first, we’re here to help you navigate Murfreesboro with confidence.

Would you like me to send you a list of our favorite local lenders who specialize in these low-down-payment programs?

Contact Me
Allison Vega, Murfreesboro Realtor, and Francis Vega, Contractor, discussing Middle Tennessee real estate in Nashville TN on the Cumberland River.

Authored By: Allison Vega, Murfreesboro design consultant, and Francis Vega, General Contractor

Nashville, TN

Allison Vega
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