I thought a 20% down payment was the only way to buy a house

For years, I saved every penny, believing I needed a full 20% down to avoid extra costs. My realtor in Austin finally sat me down and showed me a first-time buyer program with just 3% down. The numbers worked out, and we closed on a small condo last month. My monthly payment is a bit higher, but I'm building equity instead of paying rent. Has anyone else used a low down payment program and been happy with the choice?

2 comments

2 Comments

linda_kelly174d ago

Used to think the same thing. Got talked into a 5% down program and it was the only way I could have bought when I did. No regrets at all.

michael8803d ago

Ever wonder what happens when you wait too long trying to save that full 20%? My buddy did that for years, kept saying he needed the bigger down payment. Prices in our area just kept climbing way faster than he could save. He finally gave in and used a low down payment option last year, and his monthly mortgage is still less than what rent would be now. He says his only real regret was not doing it sooner.