The Question Every Hopeful Buyer Asks

Matt Brady hears the same question from buyers again and again: do I really need twenty percent down to buy a house? His answer is no. Before you spend years trying to save that much, he encourages you to figure out whether that goal actually makes sense for your situation. For many buyers, the twenty percent target is a belief rather than a requirement, and it can keep capable buyers on the sidelines far longer than necessary.

Three Things Matt Looks at With Every Buyer

When Matt sits down with buyers, they look at three things together. First, what you need to bring to close. Second, what monthly payment you are comfortable with. Third, what you will have left in the bank afterward. Looking at all three at once gives a much more honest picture than focusing on the down payment alone.

More Down Is Not Always Better

Putting more money down might lower your monthly payment, but draining your savings to do it can leave you stretched. A homeowner with a lower payment and an empty account can be more vulnerable than one with a slightly higher payment and a healthy cushion. Repairs, appliance failures, and other surprises are part of owning a home, and cash reserves help you handle them without stress.

Lower Down Payments and Assistance Programs

Depending on your situation, a lower down payment or down payment assistance could be worth exploring. Many loan programs allow much less than twenty percent down, and assistance programs may be available depending on your location, income, and loan type. Eligibility and terms vary, so it is worth reviewing which options apply to you.

Comparing the Trade-Offs Side by Side

Once the options are on the table, Matt compares the payment, the mortgage insurance, and the cash you could keep available under each scenario. Mortgage insurance is a real cost with a lower down payment, but it is only one part of the picture. Seeing the numbers next to each other makes it easier to decide which trade-off fits your life.

A Plan Built Around Your Life

Matt’s job is to help you understand those trade-offs and build a plan around your life, not around a rule of thumb. Your income, your savings, your timeline, and your goals all matter in deciding how much to put down.

Reach Out and Run Your Numbers

If twenty percent is the number keeping you on the sidelines, reach out to Matt Brady. Let’s run your numbers and see whether buying now or saving longer makes the most sense.

Sources

ConsumerFinancialProtectionBureau.gov
FreddieMac.com
Fanniemae.com
HUD.gov
NAR.realtor