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My husband and I are very financially stable, but we just had to spend all of our savings on a family health issue. So my question is: should we buy a house now with no money down or should we wait until we have the money saved and risk the housing market improving and therefore costing us more money? I feel like this is a “damned if we do damned if we dont” situation.

13 Thoughts on Should we buy a house now or wait until we have a 20% down-payment?
  1. Reply
    Jennifer B
    August 28, 2011 at 9:40 am

    I’d wait until you have more money saved. Putting a down payment down lowers your interest rate which would be easier in the long run

  2. Reply
    August 28, 2011 at 10:06 am

    It is better to have money down, but you got to do what you got to do. It all depends on the mortgage company and bank….

  3. Reply
    August 28, 2011 at 11:01 am

    I would look around now and find a good buy. You can always refinance later and add cash, etc. if you decide to.

  4. Reply
    Gary B
    August 28, 2011 at 11:24 am

    Buy NOW! No money down, the housing market is still depressed in value, in 3-4 years property prices will increase again and you will have sooooo much equity. Just make sure you can afford the payments and that you are going to buy in an area that will grow in value as the market makes its rebound.

  5. Reply
    August 28, 2011 at 11:33 am

    Now is certainly a buyers market, however you will need good credit to be able to get a loan these days. It is a tough situation, but if you work out the numbers of what it will be later with a down pmt and what it is now without…You will make a good decision.

  6. Reply
    August 28, 2011 at 12:27 pm

    I think you should talk to someone who specializes in this type of thing. There are organizations like ACORN that are non-profit and set up to help people determine when is a good time to buy for them as well as help you come up with a plan. Be careful…there are some groups out there that look like they are non-profit but want you to PAY to take their classes.

  7. Reply
    August 28, 2011 at 1:14 pm

    I think it may be difficult to find a house with no money down with the economy in such a gloomy state. I wouldn’t wait though, because now is the time to buy. It’s a buyers market.

  8. Reply
    Steve D
    August 28, 2011 at 2:03 pm

    While no down payment loans are nice and allow you to get into a house much easier, don’t expect to find any with the current credit crunch. Banks have pretty much stopped making no-down payment mortgages after getting burnt for the past few years. Figure you will need to come up with at least 5% down payment (and have to pay PMI on top of that).

  9. Reply
    Fire Cracker
    August 28, 2011 at 2:49 pm

    If possible wait until you can pay 50% or more. You do not own a house until you owe the bank nothing.

    And even then you have taxes and insurance.

    Ahh state of mind how it can make you believe in fairy tales. .

    No money down means bank is taking an unwise risk (nothing personal) I mean look at what is tearing up the economy.

  10. Reply
    August 28, 2011 at 3:28 pm

    i think you should allow housing market to stop falling,and once stabilised and prices look to be improving go for buying.
    also if you see a house you really like its a buyers market make them an offer and get a bit cheaper .
    also consider are you better off paying rent or better off with mortgage is mortgage cheaper than rent.
    but watever you do buying your home is definately a good desision,in the long run its much better than renting.

  11. Reply
    August 28, 2011 at 4:06 pm

    Negotiate a rent with option to buy !!!

  12. Reply
    August 28, 2011 at 4:53 pm

    If you can even find a loan for 100%, you will be required to buy PMI (mortgage insurance) that can be $ 300-500/month extra on your mortgage. That’s a lease payment on a car!! Many mortgages will not allow you to drop once you have it. If you can find a mortgager that allows you to drop PMI when the value of the house goes up 20%, that would be a good compromise. Don’t forget though you are paying $ 3600-6000 a year for insurance that benefits the mortgage holder, not you, until you have that magic 20% equity. How many years will that be?

  13. Reply
    One Step Ahead
    August 28, 2011 at 5:47 pm

    This is what happen before, so many people were anxious to own a house and they got in over their head.
    You had to use all of your saving on a health issue, and what is it to say that you might have another health issue soon. Some medical insurance have a way of disqualifying people have they have filled so many claims.

    I think you are better off staying where you are right now, until you can get back on your feet. There are thousands of houses for sale and they will still be for sale next year.

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