Does it still make sense to put down 20% when buying a home?

Many people believe that before buying a home, they’ll need to have 20% of the purchase price ready in cash to use as a down payment. That can make the possibility of home ownership seem overwhelming, as even buying a small property priced at $80,000 means needing $16,000 in cash at the ready, a difficult sum for many households to save.

But the notion that homebuyers need to put down 20% is a common misconception. There are lenders that can help you get a mortgage if you don’t have that much saved for the down payment. Depending on your situation, it may even be possible to get a mortgage without putting any of your own cash on the line.

However, just because you can potentially buy a house or apartment without putting down 20% doesn’t mean you necessarily should. Let’s take a look at the advantages and disadvantages and see if it still makes sense to make a 20% down payment when you buy a home…

About the American Property Owners Alliance
The American Property Owners Alliance (The Alliance) is a nonpartisan, non-profit organization created to protect and support property owners and pave the way for future property owners. Our mission is to educate property owners about federal issues, laws and policies; to advocate for owners’ rights and interests; and to mobilize, when necessary, to secure those rights and interests.
Sign The American Property Owners Alliance petition to Congress urging them to support property owners and remove barriers to more affordable housing.

Click Here