is the 20% downpayment outdated?

>>1109992
20% plus closing costs now

>>1109992
depends on you.

Cash is the most viable option if you know your shit. Then refi out 80%.

>>1109992
Nope. Assuming you're buying for a home, 20% or more has a shitton of benefits. Most lenders will give you a preferred rate, you save on PMI, and the most obvious, you pay less per payment on interest.

For example, say you're buying a $150,000 home and have excellent credit. You've qualified for an FHA loan (minimum down, 3.5%,) at 4.25% fixed. If you do the 3.5% down, assuming your PMI is 0.5%, on a 20 year note your interest will be $66,873.93, with PMI of $3,498.13. Now, the same with a 20% down will have interest of $58,339.53 and $0 PMI, a savings of $12032.53 over the life of the loan.

I don't know about you, but I wouldn't throw away $12k.

Yes. Housing is too expensive now. Outside of some select areas and individuals, nobody has enough for 20% down anymore.

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>>1109992
nigga there are people with credit scores of 500 buying fucking houses right now with 0% through down payment assistance programs now you fucking ask yourself again "is the 20% downpayment outdated" you ask yourself man.

>>1109992
Yes. I intend on paying cash. Mortgages will rape you for tens of thousands of dollars by the time the house is paid off.

Depends entirely on your local market and your plans. If you plan on going the distance on a 30 year I wouldn't walk in with any less than 20% down plus closing costs. Consider paying points too.

I got away with 8% down plus closing on an FHA no points. Just don't go crazy when you move in. Continue to live humbly and throw as much as you can at it for the first year or two. That's what I did on my first mortgage.

Home price was $55,000
Ended up paying $66,000 total 42 months later and paid it off. That's all in cost factoring closing costs, MIP and interest.

>>1109992
No one puts 20% down, they get HUD insured mortgages which let you put like 6% down or something

Is that USAA?

>>1111924
>55k for a house
...is it like a shack?

>>1111901

Yes, because there is obviously no opportunity cost associated with not having your cash invested in other more liquid or better performing assets.

And how the hell is an individual ever going to get a decent amount of leverage unless it is with a mortgage?

>>1111962
Space wise it's on the smaller side if that's what you mean by shack but the home wasn't falling in on itself or anything.

Before seriously shopping I got a realtor and asked her something along the lines of "what does no one else want? what makes a home hard to sell and scares buyers away?" Her response was less than 3 bedrooms, roof problems and small yards. I looked for that. With my only exception being that it had to be in a decent area with a detached garage.

Found a nice 2 bed 1 bath, full basement w/attic, small back yard and a 2 car detached garage - 1300sq ft. The roof was good enough for the mortgage to go through but it was old. I put a roof on myself for a little under $2300 and three days work - including $500 I paid a friend to help me. Front steps were brick and needed to be replaced which I made a project for a few weeks on the weekends. That and some interior painting.

Just gotta be willing to get your hands dirty.

>>1111988
>detached garage
workshop?
You mind me asking what you do for work?

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>>1111641
>Buying a $150,000 home

Man I want to move out of this overpriced fucking place to somewhere it's possible to own a home for $150k

>>1112064

Mainly for someplace to park our cars out of the weather but a workshop area too. Business owner and I work a normal $10/hr part time job.

>>1112071
It's a shitty house even if it's not near civilization

He probably just used that number as an example.

>>1112219
No, that's a legit number. Lexington/Irmo, SC. Good schools, low taxes, good infrastructure, virtually non-existent crime. Near to Columbia proper to take advantage of the good stuff there, reasonable driving distances to Atlanta, Charlotte, Myrtle Beach (redneck Riveria, I know,) Charleston. Only downside is, you're living in SC and all the trailer trash and jungle monkeys that come with that.

One of my co-workers lives in Brooklyn, born and raised, and I constantly pick at her about it. She owns a few rental properties, picked up a new 2bed 1 1/2 bath 1250sf with no yardage for the "steal" price of $550k. I pointed her to Zillow, gave her the zip code, and pointed out for that same half+ million, she could have bought a lakefront 5/4.5 with 4800sf on 3.5 acres for $475k.

Like realtors say, location, location, location.

>>1114068
And why the hell did it change my ID tag? I haven't rebooted my modem in days...

>currently live in an apartment the city of los angeles
>decent homes just outside the city limits are $650k.
>I'll need to save $130k if I wanna put 20% down

It's a losing game. By the time I save that much money, the house will be worth $850k or more.

My credit union offers mortgages for 10% down that dont require PMI. I'm gonna go that route.

>>1112071
Texas has cheap as fuck houses, look them up really.

Lenders are offering conventional mortgages with 3% down. You need to have good to excellent credit unlike FHA loans. PMI through conventional loans is cheaper than FHA insurance and drops off once you hit 20% LTV.

http://www.forbes.com/sites/markgreene/2014/12/09/3-down-conventional-loans-are-here-for-real/#2349c16753ee

>>1112071
Any of the rust belt cities. You can find older home in the outlying towns for under 50k and decent places in the city for 150k.

I would avoid anywhere other than the major cities like Pittsburgh, Cleveland, and Cincinnati. Too few employment prospects outside of those cities.