I think 105%. 100% for the house, 5% for other costs.
You can do it for less. The problem is, you end up paying for it in interest. This is basically additional money you pay banks as essentially a penalty for not buying with cash.
There's nothing fundamentally wrong with paying PMI for a house. It's just a matter of whether the extra amount is (1) affordable to you, and (2) worth paying so you can move in sooner.
Not being able to make the 20% down mark is a possible symptom of the house being unaffordable, but not necessarily, and there are a variety of situations in which a lack of 20% down is somewhere between totally fine and reasonably less undesirable than the other options. There's not some magic line that means that 20% down is good and 19% down isn't as long as you're happy with the little bit extra you'll pay.
I’m about to put my offer on what would be my first home with my partner. Collectively we make $255,000 USD (not counting bonuses) and will likely make an offer around 1.1-1.2 million on a single family home. The numbers all check out and we’re good to move forward financially, but it’s got me wondering what position others were in financially and how that influenced what they got their home for.
Please put how much you and the person you bought your home with make annually, type of home purchased, and how much you paid. Thanks for sharing!
Edit: FWIW we have 400k+ as a down. I’m not really looking for financial advice, just wondering what other peoples financial standpoint looked like when making this monumental decision.
Edit 2: Our offer is looking like it’ll be a little under 1.1 as that’s where we’re both most comfortable. It’s a lovely home and we want it so bad, but, there will be others. Hoping that we get accepted…
Trying to get an idea of how much cash others had when buying their first home to feel safe with their purchase.
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Well, we're going to skew this data set. We are purchasing a $220K property with maybe $5K out of our own pocket. We're using down payment assistance to cover that, and we asked seller to cover 3% closing costs in our offer. Between the inspection, appraisal, and earnest money, we might have like $1K we need to bring to closing. We had $15K saved before starting the process. Nothing close to what these other comments had. But no gifts or inheritance from family and we are working class in the Midwest.
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Hi! This is more realistic for my husband and I currently. Did the sellers seem hard pressed about them covering the closing costs? I’m in the boat of trying to figure out how to cover closing costs as this is kinda unexpected
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We had approximately $20k in cash for our home. We paid $230k for the house.
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153k down in cali for new construction. house around 900k
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A lot. I had it or could borrow from my retirement to make it happen. I got almost all my closing costs paid by the seller, I think we only had to come up with $1500 and the cost of home inspection, in addition to down payment.
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I think it varies widely based on where you are. For example, on the west coast you likely need upwards of average $75-$100k minimum for a down payment if you’re using a conventional loan and buying a sfh. In lower cost of living markets, $100k probably pays for half of the house and a $20k down payment is the norm.
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Can confirm $150k down on the West coast. 750k homes are barely in our budget.
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$50k for debt payoff, closing costs, down payment and appraisal gap.
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Cash to close was $1.4k, another $1k-$1.5k in appraisal, inspection, etc that was already paid, and $1k for escrow. So $3k-$4k to close on the house that's with lender & seller credits. Original cash to close was $8k-$9k for a $95k home. But updating some outdated things for ins so I have another $10k+ put up to take care of the required updates.
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500k house 100k down 5K closing costs.
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Between cash at closing, Ernest money, inspection, and appraisal we paid around $20k in cash.
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How much did you put down on your home? This sounds similar to our situation
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We started looking once we hit $40k with $15k in an emergency fund. By the time he we actually bought the house, we had $55k. Paid $420k.
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I’m closing on Friday. I had $100k set aside for the house if needed but it will be $57,000 out of pocket for me. $400k house with 10% ($40,000) down and then $17,000 in closing costs/prepaid insurance and property taxes. I decided to only do 10% down because the PMI is so low with a good credit score. I feel good having lots of cash available in case of emergencies and for decorating/furniture.
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20% down. Our lender told us that helps offers get accepted more, and we don't wanna pay PMI.
We won't pay more than 20% because interest rates are low so it'd be more profitable to keep that money invested while making minimum monthly mortgage payments.
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We purchased one year ago in the PNW for close to $500k. All in all, we paid $60,000 for the down payment and closing costs. We also have a $20,000 house emergency fund that we keep at that amount in savings.
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Ill have around 45k when I decide to buy. Will be looking in the 300-400k range.
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$30k available for closing costs & down payment
Only used about $21k for $323k house
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Wow, I’m so glad I live in Kentucky! I have $15k liquid cash but my cash to close is estimated around $7k right now. Did $1,000 in earnest. Inspection and appraisal were both just under $500. Seller is paying 2% of sales price in closing costs. Doing 3.5% down FHA.
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We have about 170k saved and looking at ~800-950k homes. Wasn't planning to buy until 5months ago so I have been saving every penny while losing offers 😑
Originally it was just me, looking at 650k max, and I have 95k saved. Then my partner added to my search a month ago so he just has whatever was in his savings already and not aggressively saving, which sucks a little but we are still ok.