How much money did you put down on your home?

posted 7 months ago in The Lounge
Post # 31
Member
981 posts
Busy bee
  • Wedding: July 2019

jannigirl :  yup! LOL

I bought my house as a single mom with 3.5% down FHA loan.

Fiance is a veteran so he has a VA loan available. We will buy a bigger house in about 2 years and VA loans require no down payment. Our mortgage should only go up about $200 per month based on the houses/area we are looking at. We’d rather keep our savings and not use it if we dont have to.

For what its worth, my mortgage with 3.5% down is LESS that I was paying to rent a similar house 4 blocks away so it would make no sense to wait and save. I didnt put a lot down, but my monthly cost is lower and Im building equity instead of paying rent to someone else while I save for years.

Sure in an ideal world I would have put 20%+ down… but we all have to make the best decision given our personal cicrumstances. Putting down 3.5% was totally the right move for me at the time.

Post # 32
Member
9178 posts
Buzzing Beekeeper

20% on ~$1.25M. HCOL area (Silicon Valley) in a competitive market (8 or 9 other offers). We wanted the mortgage interest tax deduction but didn’t want to put any more down bc mortgage rates were so low when we bought in 2015.

Post # 33
Member
6379 posts
Bee Keeper

20% to avoid mortgage fees. 

we both saved while we still lived at home so it was easier than if we were paying rent. 

Post # 34
Member
32 posts
Newbee
  • Wedding: December 2019 - Our Backyard in Hawai’i

10%. Wow you guys are all so lucky! We’re 23 and 27 and live in Hawai’i our entire lives so we understood everything here is expensive (in our opinion). We have great jobs but still wanted to buy new furniture (our furniture from our old rental was cheap and was already breaking down). We wanted to make sure we were still comfortable with the amount of money in our bank accounts for our wedding/honeymoon/future. We rented a 2 bedroom apartment since I was 18 and never got help from anyone. I’m just thankful we were even able to pay for our new house by ourselves. 

Post # 35
Member
2577 posts
Sugar bee

In an ideal world everyone would be able to put down 20%, but in the end it’s not necessary.  

Just make sure to buy what you can afford.  

 

Post # 36
Member
7676 posts
Bumble Beekeeper

futuremrs2020 : 5% but I used a special program in my state that let me do that without pmi. The timing made sense to not wait until I had 20% because (1) the market was just beginning to recover and prices were going up and (2) my next raise was going to put me over the income limit for the program I used. If I had waited I’d probably still be renting even though I bought over 5 years ago. Our market is nuts. 

Post # 37
Member
718 posts
Busy bee

2bmrsksk :  Whoa, home ownership was not even on my mind in my 20s, and it simply wasn’t an option. Pay the down payment that gets you into the market while still being able to afford your monthly payments, which it sounds like you did. Congrats on getting into the real estate market so young! 🙂

I hope you don’t get the impression that we’re saying more % down is some badge of honor! Sure, it’s nice, but not a reality for most, especially first time home buyers. 

Post # 38
Member
32 posts
Newbee
  • Wedding: December 2019 - Our Backyard in Hawai’i

You are awesome and so kind, techmom : !!! I hope you’re having a great day!

Post # 39
Member
1026 posts
Bumble bee
  • Wedding: August 2019

futuremrs2020 :  we borrowed almost 100% after the government took $10k of our deposit for stamp duty. This was about 6 months ago 

But, FI’s parents were kind enough to guarantee the deposit from one of their z-list investment properties, so we avoided PMI (called LMI here in Aus). Fiance works for a bank, so we only need 10% equity to get them off it.

At the time we were earning much less. As luck would have it, our gross income is now $70k higher than it was 6 months ago, so our minimum repayments are something like 13% of our income. We’re putting a heap back on the house to free up his folks. Not because they demand it, but I feel better for it. 

Have you thought about having someone guarantee part of your deposit? I put a post up on it ages ago and got lampooned for being selfish so maybe don’t broadcast it, lol. But it’s a common thing where we live. Tbh it’s the only way many gen Y buyers can enter the market while avoiding LMI. 

Post # 40
Member
70 posts
Worker bee

We put down 20% to avoid PMI. But we lived with my in-laws rent free for 2 years to do so. We also paid off my husband’s entire school loans (he has 7 years of schooling – 4 years from a private college and 3 years of medical school program…he’s a physical therapist).

we tried to buy 6 others in that 2-year timeframe but kept getting beat out or the home inspections came out awful!

 

Post # 41
Member
738 posts
Busy bee
  • Wedding: December 2017

I bought my first house at 24, on my own. I busted my ass for five years saving, and put 35% down. Recently my husband and I moved from the second most expensive city in Canada to a much much less expensive one, so we were able to purchase a house here outright, on the equity we made from the first house. 

Post # 42
Member
549 posts
Busy bee
  • Wedding: September 2020 - Summer Camp!

mel2 :  So you’re not going to put anything down on your next home? My fiance and I are probably going to use the VA loan for our first home, but I was reading that sometimes buyers still want to see some cash? I’ve also rest that there’s a VA few you have to pay, and it can go down if you’ve paid a certain percentage on it (among some other factors). 

Post # 43
Member
1305 posts
Bumble bee

We bought 2 homes about a year apart.  That wasn’t the original plan when we bought the first one, but Darling Husband got a new job and the new commute was too much where we lived.

We moved from one high COL suburb to another (Chicago suburbs).  I know the COL isn’t as high as Silicon Valley or NYC but it’s still high for the Midwest.  Property taxes suck here.

We wound up making a lateral move, so our new house was about the same cost as our previous one, but the property taxes were slightly higher based on being in a different county.  So long story short, we put 20% down on our first house and I think 18% on the new one.  We already had new furniture so we didn’t have to plan for that expense, plus we gained some on the sale of the first house.  We put a little less down only because my husband wanted to have more of a buffer in the bank for emergencies, as we had a huge one with the first house (foundation problems).  We will only pay PMI for another year and it really didn’t add that much to our monthly payment.  We are also paying our mortgage twice a month so we will pay it off a lot sooner than a traditional 30 year loan.

We are also in our early 30’s and our last house was our first.  Most of our friends don’t buy until late 20’s – early 30’s so there’s more time to save.

Post # 44
Member
211 posts
Helper bee

We bought in 2014 for $1.2m and put 20% down. I wish we could have put down more but closing costs in NYC are a nightmare.  We had a 5/1 ARM at around 2% and then refi-ed into a 30 year last summer.  

 

We had a decent amount of savings and also borrowed against some of our retirement accts for the down payment.  When we refied we paid back our retirement funds (the house had doubled in value due to some work we put in) so now we’re “whole” on our retirement funds and locked into a nice rate on a 30 year.  Def a somewhat risky move to borrow against retirement funds and basically liquidate our liquid assets but the house is now worth more than double what we paid for it and we make more money these days.

 

My best friend is currently looking for a condo here in NYC and is planning to put down 20% on somthing in the 600-700k range. This will be her first time buying property and shes been saving her entire career.  She’s 45.  It’s defintely atypical for folks in their 20s to buy property here!

Post # 45
Member
2015 posts
Buzzing bee

5% a few years ago.  Maybe 10% on next house. We would like to do 20% but not sure it’s worth waiting until we can save it given the cost of rent compared to mortgages here.

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