I was totally wrong about how much you need for a down payment

I was convinced you needed a full 20% down to buy a house, no way around it. Then I was reading an article on the NerdWallet site and saw that the average first time buyer puts down only 6%. That stat blew my mind. It completely changed my timeline because I was saving for years to hit that 20% mark. Now I'm looking at FHA loans and some local first time buyer programs in Tampa that need way less. Has anyone here actually bought with a down payment under 10%? What was your experience like with the monthly payment?

3 comments

3 Comments

blair_webb2mo ago

Check if that 6% figure includes closing costs too.

alex_wilson792mo ago

Yeah, that's a solid point. I've seen some calculators just roll the agent commission into that number, but closing costs are a whole other pile of fees. Are we talking title insurance, transfer taxes, all that? Because those can add a few grand on top, easy. Makes a big difference in what you actually walk away with.

eva_thompson2mo ago

Wait, they don't include closing costs in that? That's wild. Alex_wilson79 is totally right about those extra fees adding up. If the 6% is just the agent cut, you're looking at way more coming out of your pocket at the end. Sellers could be in for a nasty surprise when they see the final statement. You really have to dig into what any "selling cost" number actually covers.

-1