Sarah insisted they keep $10,000 in the bank after the purchase. "Houses break the moment you move in," she warned. "You’ll need a lawnmower, curtains, and a plumber for that leak you didn't see during the walkthrough." The Decision
Are you a ? (This often unlocks lower down payment options). how much money do you need to buy a house
Leo and Mia looked at their $50,000. If they bought the $400,000 house: $20,000 (5%) Closing Costs: $12,000 (3%) Total Spent: $32,000 Sarah insisted they keep $10,000 in the bank
To give you a better idea of your own "magic number," tell me: What is the in your target area? (This often unlocks lower down payment options)
This was their biggest hurdle. To avoid private mortgage insurance (PMI), they wanted 20%, which on a $400,000 home was $80,000. Sarah pointed out they could put down as little as 3.5% ($14,000) with an FHA loan, but their monthly payments would be higher.
That left them with for emergencies and furniture. They realized they didn't need a "perfect" 20% down payment to start their lives; they just needed enough to be "house-safe."