Post # 1
We had our first meeting with a realtor and I am so excited but my head is spinning a bit! We definitely don’t have 20% saved (more like 10-15%) and we also do not want to wipe out our savings. Our realtor said a lot of his first time homebuyers use FHA loans to put down as little as 3.5%. It doesn’t look like it would have a huge bearing on our monthly payments (excluding the addition of PMI) and it would be nice to have more cash at hand for house expenses.
It would be great to hear from some other people’s experiences–what percent did you put down, and how did you choose that amount?
Post # 3
Great question! I am currently saving for a down payment too. I haven’t started talking to relator’s yet though, I don’t want to do that until I have 10 or 15 thousand in the bank. But I wasn’t sure if that was too little.
Post # 4
I put down 20%, but that is definitely not the norm anymore. Typically first time homebuyers take the FHA loan and put down less.
Post # 5
We put down 30% but we had help. Really did wonders for our monthly payment!
Post # 6
We just put in a contract to build our house last weekend and will be putting down 70%.
Post # 7
I put down 10% and have a piggyback mortgage so I don’t pay PMI.
Post # 8
We did FHA and put down 11%. This was in April. We have already paid enough into the house to have 20% equity now. We’re locked into our PMI for the next five years, but it’s not a terrible amount of money. We’re outta that as soon as we can be, though.
Post # 9
We did an FHA loan and put down 3.5%. We wanted to have savings remaining after the purchase for emergencies and to buy furniture, plus it would have taken us a heckuva long time to save up 20%! With the market in our area being what it was, it was a perfect time to buy, and although the PMI is a pain, I think we made the right decision!
Post # 10
20% because we didn’t want to pay PMI. Our monthly payments for a 4 bed 2.5 bath house is LESS than our rent for a 1 bed 1 bath 3rd floor walk up.
Post # 11
We did FHA and put down like 4 or 5%.
Post # 12
The PMI really increases your mortgage payment by a lot. We didn’t put anything down because we were fortunate enough to qualify for both a VA loan and a USDA loan which is 100% financing with no PMI. Most people do go with the FHA loan and just pay the PMI and it’s no big deal. However, if we didn’t have the 100% financing and put 3.5% down and paid the PMI our payment would be higher than what we pay with 0% down.
Post # 13
20% down would have been almost $115,000 for us in our market…so, we put down 7% ($40,000) and pay CMHC insurance due to having a “high-ratio” mortgage. This is very common in Toronto, due to our housing market.
This also left us with enough money to pay for all closing costs and retain savings for emergencies.
Post # 14
We put down 3.5% with an FHA loan… We were just getting started in our jobs and didn’t have enough money to put down 20% and then be able to update the kitchen and add a fence for the backyard. Even with PMI, we are paying about the same as we would have to pay to rent a similar house in our neighborhood, and we’re slowly building equity, so definitely worth it to own, even with the small down payment.
Post # 15
@Pomapoo: I agree. If you wait until you have a 20% down payment in some markets, you will be waiting forever because houses just keep going up in price.
A house down the street from us (very similar to ours, but less upgrades requiring more renovation) actually sold for $50,000 more than ours (3 months later). That level of growth is crazy and will cut many first-time buyers out of the market completely.
Post # 16
- Wedding: March 2014 - Brazil Room
I put down 20% which was like $46K for my house. Mainly, I had it on hand because of inheritance from my parents’ deaths. And though it did drain my savings down to very little, I wanted to avoid PMI payments. If you take what you would’ve paid towards PMI and make monthly payments to your savings instead, you’ll build your savings back eventually. 🙂