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People keep saying you need a 20% down payment for a house and it's just wrong
I see this all over finance reviews and it's bad advice. My cousin just bought a place in Phoenix with a conventional loan and only 5% down. The PMI is like $80 a month, which is way less than he was paying in rent hikes. He saved for 2 years instead of 8 to get the 20%. If you have good credit, you can get a loan with 3% down. Why are we telling people to wait forever and miss out on building equity? What's the lowest down payment you've seen someone actually get approved for?
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sarah_johnson466d ago
My friend got a USDA loan with zero down, which was great until I realized my city apartment doesn't qualify for a farm loan. I guess I'm stuck saving.
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evand656d ago
Honestly, the whole down payment talk reminds me of my neighbor. He was so set on the 20% rule he waited a decade, and now the starter home he wanted costs triple. He finally bought with 10% down last year and his PMI is less than his old cable bill. The math just doesn't always add up like the old advice says.
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