Two renters pose in front of their new home that they’re renting from Roots, a program that helps renters invest in real estate.
Courtesy: Katie Curran
When Will Hunnicutt was searching for an apartment in Atlanta earlier this year, pricey leases and application rejections left him feeling defeated.
“The three-and-a-half times income-to-rent ratio is kind of hard to fulfill when they’re wanting $3,000 in a lot of places,” the 30-year-old social worker said.
Then Hunnicutt found a $1,050-per-month two-bedroom apartment tied to Roots, a real estate investment trust based in the Atlanta area that works to help rentersof the properties in its portfolio build wealth toward homeownership.His $1,000 security deposit is invested in the REIT, and he has earned another $200 in quarterly rebates so far for taking care of his unit and paying rent on time.
“The end goal is to buy a house, so having investment funds, that passive income, would be very helpful,” Hunnicutt said.
Will Hunnicutt with his dog Bailey in his Atlanta home that he rented through Roots, a company that helps renters build wealth by investing in real estate.
Courtesy: Will Hunnicut
Roots is currently only available in Atlanta, but has plans to expand this fall. It’s just one approach to a broader aim: helping consumers get financially ready to buy a home.
As buyers continue to struggle with home affordability, experts say programs that help with down payments may be worth another look.
The dream of owning a home is moving further out of reach for many as homes get more expensive. Aspiring homebuyers need to make $113,520 a year to buy a typical U.S. home, according to national brokerage site Redfin — 35% more than what a typical household earns annually.
One barrier toward homeownership is having enough savings for a down payment. Nearly 40% of Americans who don’t own a home point to a lack of savings for a down payment, according to a 2023 CNBC Your Money Survey conducted by SurveyMonkey. More than 4,300 adults in the U.S. were surveyed in late August for the report.
‘Thousands of down payment-assistance programs’
Down payment-assistance programs come in different forms, and from different sources — including state agencies, cities, nonprofits, financial institutions and mortgage lenders. So you’ll have to hunt around to see what’s available in your area.
Usually, assistance programs focus on first-time homebuyers and buyers who meet certain income qualifications. There are also programs focused on “first-generation homebuyers.”
In many down payment-assistance programs, participants have to take a homebuyer education course. Depending on the program, they may also have to meet other conditions, like getting their mortgage through a specific lender or saving a set amount to contribute toward their home purchase.
The aid can be significant. For example, Alternatives Federal Credit Union in Ithaca, New York, has programs offering $9,000 up to $20,000. The Chicago Housing Authority can assist with up to $20,000.
These kinds of programs are one way to work toward equality in homebuying, as systemic barriers still block the path to homeownership for many Americans, housing experts say.
This is especially true for Black Americans, who have largely made up the receiving end of decades of redlining, exclusionary zoning and predatory lending, according to Nikitra Bailey, executive vice president of the National Fair Housing Alliance.
Programs targeted toward first-generation homebuyers are crucial, she said. While it’s common for family to help with a down payment, would-be buyers whose parents rent are less likely to be able to offer that help.
“We know there are thousands of down payment-assistance programs that cities have adopted,” but their reach in “underserved consumers of color” is limited, Bailey said. “And that’s why ‘first generation’ is very important, because it’s a race-neutral way to target resources to the consumers that the future health of the housing system depends on.”
How much you need for a down payment
Part of the reason coming up with a down payment is so daunting is that buyers often think they have to put down 20% of the home purchase price. They’re mistaken, experts say.
Keep in mind, putting less than 20% down typically means you would have to pay private mortgage insurance, or PMI. PMI can cost anywhere from 0.5% to 1.5% of the loan amount per year, depending on different factors, according to The Mortgage Reports. Typically, you can request for mortgage insurance to be removed after you reach 20% equity.
‘Those dollars should not be invested in the market’
First-time homebuyers may qualify to make penalty-free withdrawals up to $10,000 from a 401(k) plan or traditional or Roth individual retirement accounts. But financial advisors recommend preserving those funds for retirement when possible.
While Roots may help its renters invest to build wealth, experts typically emphasize saving rather than investing for short-term goals.
Low-risk options including high-yield savings accounts, certificate of deposits or Treasury bills may be ideal for people whose timeline to buy is up to five years.
“Anything that you need dollars for in the next three to five years, those dollars should not be invested in the market,” said Janet Stanzak, a certified financial planner and founder of Minnesota-based Financial Empowerment. “Markets typically cycle in three to five year cycles, and the worst case would be, you find a home you want to move on and your money’s in the market and the market takes a downturn.”
The 2026 residential real estate market presents a nuanced landscape for homebuyers, current homeowners, and property investors. With benchmark mortgage rates adjusting alongside Treasury yield movements, real estate strategies require careful evaluation of borrowing costs, local market supply dynamics, and long-term home equity management.
Adapting Homebuying Strategies to Mortgage Dynamics
Prospective homebuyers are adapting to fixed 30-year mortgage rates hovering between 6.0% and 6.8%. While borrowing costs are elevated compared to historical lows seen in prior decades, moderating home price growth across several regional markets is creating selective opportunities for buyers with strong credit profiles.
Homebuyers are increasingly utilizing strategic mortgage options:
– Builder Rate Buydowns: Purchasing new construction homes where developers offer temporary or permanent interest rate buydowns to lower initial monthly payments.
– Adjustable-Rate Mortgages (ARMs): Selecting 5/1 or 7/1 hybrid ARMs with strict rate caps for short-to-medium-term housing plans.
– Points and Financing Structure: Evaluating upfront discount point purchases to secure lower fixed interest rates over the loan term.
Home Equity Utilization and Renovation Financing
For existing homeowners holding low-rate legacy mortgages, moving to a new property often entails relinquishing favorable debt terms. Consequently, many homeowners are choosing to renovate and expand existing properties rather than sell.
Home Equity Lines of Credit (HELOCs) and home equity loans allow homeowners to access accumulated property equity for capital improvements without disturbing their primary mortgage rate. Utilizing home equity for value-adding property renovations can enhance living space while increasing long-term property values.
Strategic Real Estate Investment Guidelines
For residential property investors, achieving positive cash flow requires strict underwriting standards:
– Stress-Test Operating Expenses: Factor in rising property insurance premiums, local property taxes, and ongoing maintenance reserves.
– Focus on High-Growth Rental Markets: Target regions experiencing steady job growth and sustained tenant demand.
– Maintain Cash Buffers: Ensure property portfolios maintain dedicated emergency reserves to navigate unexpected vacancy periods or major repairs.
Actionable Homeownership Steps
1. Evaluate Complete Monthly Housing Costs: Assess property taxes, homeowners insurance, and HOA fees alongside principal and interest.
2. Leverage Renovation Equity Carefully: Utilize equity loans strategically for renovations that generate long-term property value.
3. Prioritize Credit Score Optimization: Secure top-tier credit scores prior to mortgage pre-approval to qualify for competitive lender pricing tiers.
The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.
The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.
Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.
The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.
Here is the list of the 50 countries on the list as o August 3, 2026
Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.
Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.
Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.
The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.
Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.
By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.
Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.
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