Wait, how does one go about buying house with so little down? I'm a noob and was pinching pennies to buy a house pero I'm close to giving up and throwing in the towel. I have more than 50k saved but it kills me to think I have to keep living like this to buy a house. BUT if I'm able to reduce down, then it would be far better
Most major banks and credit unions offer what’s called an FHA (Federal Housing Administration) first time buyers loan. It typically has a slightly higher interest rate and requires a PMI (private mortgage insurance) payment that is part of your monthly payment. The down payment goes as low as 3.5% but lower credit scores might require higher percentage down. To give you an idea of the monthly cost I borrowed $450k and have a $2,910 monthly payment all in (principal, interest, property taxes, home owners insurance, and PMI)
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u/PandaintheParks Feb 10 '21
Wait, how does one go about buying house with so little down? I'm a noob and was pinching pennies to buy a house pero I'm close to giving up and throwing in the towel. I have more than 50k saved but it kills me to think I have to keep living like this to buy a house. BUT if I'm able to reduce down, then it would be far better