Abby Badach Doyle

And even below that, some loans have a minimum of 3% for conventional loans, 3.5% is the minimum for FHA loans, and some loans like USDA and VA mortgages don't require a down payment at all. So definitely don't need 20% down to buy a house. To share a personal story, when we bought our house last year,

We expected to make a larger down payment, but we bought a house that we wanted to do some renovations right away. So we only put down 5% so that we would have more money in the bank for those renovations. So we tackled a minor kitchen remodel. We remediated some knob and tube wiring and having that cash in the bank was super helpful. So

We expected to make a larger down payment, but we bought a house that we wanted to do some renovations right away. So we only put down 5% so that we would have more money in the bank for those renovations. So we tackled a minor kitchen remodel. We remediated some knob and tube wiring and having that cash in the bank was super helpful. So

We expected to make a larger down payment, but we bought a house that we wanted to do some renovations right away. So we only put down 5% so that we would have more money in the bank for those renovations. So we tackled a minor kitchen remodel. We remediated some knob and tube wiring and having that cash in the bank was super helpful. So

The rule of thumb with down payments is larger down payment means a smaller monthly payment, but a smaller down payment leaves more cash in the bank for other stuff. So it's really about what's most comfortable for you.

The rule of thumb with down payments is larger down payment means a smaller monthly payment, but a smaller down payment leaves more cash in the bank for other stuff. So it's really about what's most comfortable for you.

The rule of thumb with down payments is larger down payment means a smaller monthly payment, but a smaller down payment leaves more cash in the bank for other stuff. So it's really about what's most comfortable for you.

For sure. And then you're in there, your foot's in the door, and you're building that equity.

For sure. And then you're in there, your foot's in the door, and you're building that equity.

For sure. And then you're in there, your foot's in the door, and you're building that equity.

PMI or private mortgage insurance is what protects the lender if you make a down payment less than 20%. So that is a real thing. But it's an additional fee that's tacked onto your loan, and it drops off once you hit that 20% equity. So your mortgage broker or your loan officer can help run the numbers at different down payment amounts.

PMI or private mortgage insurance is what protects the lender if you make a down payment less than 20%. So that is a real thing. But it's an additional fee that's tacked onto your loan, and it drops off once you hit that 20% equity. So your mortgage broker or your loan officer can help run the numbers at different down payment amounts.

PMI or private mortgage insurance is what protects the lender if you make a down payment less than 20%. So that is a real thing. But it's an additional fee that's tacked onto your loan, and it drops off once you hit that 20% equity. So your mortgage broker or your loan officer can help run the numbers at different down payment amounts.

so that you're able to understand how much PMI you would be paying and how that would impact your monthly payment.

so that you're able to understand how much PMI you would be paying and how that would impact your monthly payment.

so that you're able to understand how much PMI you would be paying and how that would impact your monthly payment.

Closing costs are those miscellaneous fees that complete the transfer of ownership of the property. That's something that you pay at the very end of the line on closing day when you're handing over the keys. And they run 2% to 6% of the loan amount. So you typically pay for those in cash or a wire transfer or a cashier's check.

Closing costs are those miscellaneous fees that complete the transfer of ownership of the property. That's something that you pay at the very end of the line on closing day when you're handing over the keys. And they run 2% to 6% of the loan amount. So you typically pay for those in cash or a wire transfer or a cashier's check.

Closing costs are those miscellaneous fees that complete the transfer of ownership of the property. That's something that you pay at the very end of the line on closing day when you're handing over the keys. And they run 2% to 6% of the loan amount. So you typically pay for those in cash or a wire transfer or a cashier's check.

So the important thing to keep in mind when you're budgeting for a house is it's not just the down payment. You do want to have some wiggle room for the closing costs. as well as all of those cash expenses that you'll pay along the way, like a home inspection, things like that, moving costs. So it's not just the down payment.