According to the National Association of REALTORS®, more than 40% of first-time home buyers make small down payments on their homes.
Some make no down payment at all.
When you make a small down payment, it doesn’t mean you can’t afford to buy a house. It means you prefer to keep your money for things besides a down payment.
Here are three times when it makes sense to make a smaller down payment on a home.
One, when making a large down payment depletes your cash savings.
Having a cash stash matters. Your life moves in unexpected directions. Cash is valuable when you fall ill suddenly, or need emergency dental work, or lose a portion of your household income.
Two, when you want to buy a house and don’t have much cash saved up.
The gauge for “affording a home" isn’t how much cash you’ve saved up. It's whether you can make your monthly payment without feeling stressed about it.
And, three: when you feel like it! It doesn't matter what your friends say. It doesn't matter what your family says. Make a down payment decision that works best for you.
The size of your down payment is your choice. Let us know your question in the chat and we're happy to help.