Do You Need 20 Percent Down to Buy a House?
A persistent home-buying myth is that you must save 20 percent of the purchase price before you can buy a home. While putting 20 percent down can have advantages in some situations, many buyers use loan programs that allow substantially smaller down payments.
The right down payment depends on your financing, available savings, monthly payment goals, and overall financial situation. Putting more money down can reduce the amount financed, but using all your savings just to increase the down payment may leave you with very little cash after closing.
Buyers should consider the complete financial picture. Homes require maintenance, furniture, moving expenses, and occasionally unexpected repairs. Having reserves after closing can be valuable, particularly for a first-time homeowner adjusting to new expenses.
Brad Papa and Team Papa encourage Kansas City-area buyers to speak with a qualified lender early in the process so they can compare realistic options. Don't assume homeownership is years away simply because you haven't saved 20 percent. Find out what programs and numbers actually apply to your situation.
Brad Papa | Team Papa – Keller Williams
Kansas City Real Estate | Olathe • Overland Park • Lenexa • Johnson County
Phone: 913-526-4985
Email: Brad@PapasInTheHouse.com
Website: PapasInTheHouse.com
