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To be fair you don't actually need 20% down. It's recommended but hardly the norm. Plenty of people will do 5 to 10% down. Veterans need as little as 3%.
by brianwawok 9y ago
To be fair you don't actually need 20% down. It's recommended but hardly the norm. Plenty of people will do 5 to 10% down. Veterans need as little as 3%.
- dawnerd 9y agoAnd depending on your credit PMI isn't that much per month. It also goes away once you've paid enough to hold 20% equity.
- AndrewKemendo 9y agoAs a veteran homeowner I can tell you I paid 0 down on a Fixed rate.
- tptacek 9y agoThat used to be very easy to do, but got harder after 2008.
- AndrewKemendo 9y agoDid mine in 2013
- deleted 9y ago[deleted]
- saosebastiao 9y agoTry it now as a first time homeowner.
- jghn 9y agoIt can seriously hinder the quality of your bid however. If you're putting 5% down and competing against people putting 20% or even straight cash you're in serious trouble.
- aptwebapps 9y agoWhy would the size of the downpayment affect your bid? Isn't that between you and your loan officer? Does it affect how the seller gets paid?
- jghn 9y agoRegardless of reality, sellers see the buyers as being less serious and/or more likely to back out of a deal with a lower down payment. As someone who bought their house with a smaller than normal down payment it was quite frustrating. I wound up starting to bid much higher than I wanted in an effort to put more room between myself and normal down payments Note that this only really matters in a hot market where sellers can pick and choose
- paulddraper 9y agoIt's expensive to go under 20%, whether in interest rate or insurance.
- sjg007 9y agoThis depends on specific circumstances. If the house appreciates quickly you can discharge PMI early. And how much house you buy.
- paulddraper 9y agoSort of. There are minimum time requirements for PMI no matter how quickly a house appreciates.
- sjg007 9y agoDepends on the State.
- sjg007 9y agoFannie Mae has 3% as well and you can roll your student loans into it if you want via SoFi.
- ferentchak 9y agoWhat does that do for bankruptcy rules? Sounds either very good or very bad for people with unmanageable student loan debts.