Portal Forum General General Discussion Home Ownership Reply To: Home Ownership

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fishingmnfishingmn
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I have a fair share of knowledge about buying & selling homes. In addition to our primary residence I own 11 rental properties + I’m a realtor.

Definitely agree that 20% down shouldn’t be the guide to buying. It’s more about affordability and where you are at in life. Nothing wrong with an FHA loan and 3.5% down if you have the income to pay it comfortably and are ready for committing to be a home owner and live there for 4+ years.

Also, you asked about closing costs. Keep in mind that for first time home buyers well over half of them ask the seller to include closing costs (typically around 3% of the offer price). Basically, that means that you are going to pay more for the house & loan but have less out of pocket costs. To a seller it doesn’t matter whether they get $145,000 or get $150,000 and pay $5,000 toward your closing costs as it nets them the same amount but for many buyers it is very helpful to have a larger loan and less out of pocket. These days it seems like more buyers have plenty of income to qualify for a loan but not necessarily as much saved and this helps with that.