No Down Payments
No Down Payments
Renters rarely have to put more than the amount equal to two month’s rent down, as well as a security deposit (which, if all goes well, you may get back anyway).
But, more often than not, a down payment on a house will be between 10-20% of the asking price. Depending on the current price of the home you’re looking to buy,
this could mean tens of thousands of dollars and the need for a minimum of 720 credit score for the least amount of hassle.
In a perfect world, that down payment would become equity but, as I’ll explain below, that outcome doesn’t always happen.
If you want to turn your down payment into an investment, there are many ways to do that besides buying a home. Plus, if you buy a home you’ll also need to have extra money set aside for any unexpected costs that come up during the process of moving in (such as repairs that were not identified prior to the sale of the house).
Keep in mind the average home purchase age 10 years of more has proven to require 10 percent in repairs that were not found by inspectors.