How Much Money Do You Need To Put Down When Buying A House?
When you’re thinking of buying a home, you’ll often ask, “How Much Money Do You Need To Put Down When Buying A House?” Well I’m here to tell you that it’s likely less than you think. In fact, it’s much less. A standard, popular loan type (FHA) only requires 3.5% down. This might make the rest of this post somewhat anti-climatic, but it’s such a pervasive myth that I thought it was worth debunking.
I recently got interviewed and this is the very question I got:
The standard down payment is 20 percent, but many people struggle to get there. Can you get by with less than 20 percent down?
To which my response was… Where’d you get that information? Standard loans have 3.5% on up. Now there is a very popular entertainer that likes to promote his method of buying a home, which is 20% down and getting a 15 year loan. This is a very conservative, safe, sound approach. If you’re 15 years old reading this, please start saving up. For most folks, if they want to follow this to the T, they will end up living with Mom until they are in their late 20’s or worse.
Hear me out, I’m not against buying this way, in fact, I love it when people can. However, I think you can buy well below your financial means and put less money out of pocket and be much better off.
To find out more about how much money you need down when buying a house, call us at 678-999-1001.
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