found that 76% of Americans who bought a home in December put down less than 20%.
"I had a client that bought a house at the beginning of 2018 and they didn't put any money down," Morrison said, explaining that the client used a state program in South Dakota allowing people to. "They had to have PMI on it, which cost them an extra $86 a month." In this buyer's scenario, the market helped the person reach 20% equity in just under two years. In a market that's growing, Morrison says, PMI can be gone rather quickly. When the home's value increases, the loan-to-value ratio decreases, making your loan eligible for PMI removal.
Putting 5% allowed him to start building equity sooner rather than later. "Where I live in the Black Hills, our appreciation is starting to jump up," he said. "We're starting to speed up to the point where if you don't have a down payment, your interest rate may be a quarter percent higher, but you're going to gain so much equity in that time.
In other parts of the US, especially in more expensive areas, it's becoming common to make a smaller down payment. "I think 10% is, if not the new standard, it's acceptable," said But to Watterson, the down payment isn't the main consideration when thinking about buying a home. "The most important thing is making sure that you feel confident that you can make your monthly mortgage payment, however much you put down," she says.
You could always rent from me and pay my mortgage.