DAE think the '20% down payment' rule is just a scare tactic for first timers?

I bought my place in Austin with just 5% down using an FHA loan, and my monthly payment is only $150 more than if I'd waited 5 years to save the full 20%.

3 comments

3 Comments

sandragonzalez8d ago

But what about the PMI you have to pay with a low down payment? That extra cost can add up for years, which they don't always make clear upfront.

joseph3008d ago

It's like the old rules exist just to keep regular people from getting started, you know?

the_kevin2d ago

My buddy Jake in Phoenix finally saved up 15 grand for a down payment last year. He found a condo he liked, but the bank said he needed 20% down to avoid this huge monthly fee on top of his mortgage. That extra 5% was another 25k he just didn't have. He ended up renting for another year while he watched prices go up. It really does feel like the goalposts move right when you get close.